Budget 2023-24: Relief is expected from the government in the budget, because in this financial year, due to inflation, retrenchment, unemployment etc. their pockets have been heavily affected.
Union Budget 2023-24: If you are a central employee then there is great news for you. Because in the upcoming budget 2023-24 to be presented on February 1 this time, Finance Minister Nirmala Sitharaman can make a big announcement for central employees. As the date of the general budget is coming closer, people's expectations regarding the budget are also increasing continuously. From job professionals to farmers, from common man to businessman, it is expected that this time the government will definitely announce something big because it is the last full budget before the Lok Sabha elections. Meanwhile, it is also expected that the middle class can get tax relief in the last full budget .
Explain that tax payers are most affected by the general budget. A major part of the taxpayers are salaried taxpayers. Relief is being expected from the government in the budget, because in this financial year due to inflation, retrenchment, unemployment etc. their pockets have been heavily affected. Finance Minister Nirmala Sitharaman herself has indicated to give relief to the middle class. In such a situation, what tax related relief can the government give in this budget, let us know-
These are the expectations from the budget
1. At present, the limit of tax free income is Rs 2.5 lakh per annum. Tax has to be paid on income above this. This limit was set in the financial year 2014-15 and there has been no change since then. According to experts, in view of inflation, this limit should be increased to Rs 5 lakh. This will increase the purchasing power of taxpayers.
2. Most of the taxpayers take advantage of the deduction under Section 80C of Income Tax. Tuition fees, life insurance, tax saving mutual funds, PPF etc come in this one section. At present, the maximum deduction limit available in this is Rs 1.5 lakh. The last time this limit was increased in the 2014 general budget. Experts are expecting it to increase to Rs 2.5 lakh considering inflation.
3. Salaried taxpayers currently get a standard deduction of Rs 50,000. This limit of 50 thousand was increased for the last time in the financial year 2019-20. Standard deduction is expected to be increased. Because the employees have to incur various expenses for the execution of their work, which also includes skill development. But salaried taxpayers do not get deduction on those expenses like businessmen.
4. A deduction of up to Rs 2 lakh on the interest paid on the home loan is available under section 24(b). This limit was also increased from 1.5 lakh to 2 lakh in the financial year 2014-15. Since then, the value of the property has almost doubled. In such a situation, experts are expecting to increase this deduction to Rs 3 lakh.
5. The lock-in period for deduction under section 80EEA (interest paid on housing loan) and 80EEB (interest paid on electric vehicle loan) is also expected to be extended to two years.
Increased deduction on health insurance and expenses
According to experts, the rise in medical expenses and insurance premiums in the post-Covid era has had a huge impact on individuals' pockets. Due to this, the limit of income tax deduction on health expenditure or health insurance premium under 80D should be increased from the existing level of Rs 25,000 to Rs 50,000 and for senior citizens from Rs 50,000 to Rs one lakh.
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