Budget 2023: Possible income tax benefits to expect for working class

The Narendra Modi administration's 2014 election result resulted in the last revision of India's income tax slab. Aiming to help the middle class, tax changes were made. On the other hand, because of the prolonged high rates of inflation, many middle-class people now call for additional tax breaks. As for the future budget, let's see what the experts have to say.

Union Budget 2023 is approaching. Some of the predictions for the Union Budget 2023 from Finance Minister Nirmala Sitharaman include raising the standard deduction, reducing income taxes, and increasing the Section 80C exemption.

Standard deduction hike for paid individuals:
Pensioners and people who rely on salaries for a living are expecting that the standard deduction will be increased in the upcoming budget. Currently, a discount of Rs 50,000 is being provided. Experts claim that inflation has caused a rise in living expenses. Consequently, it is predicted that the standard deduction will increase as a result of the budget.

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Reducing tax rates:
Financial professionals have long argued in favour of providing individual tax relief to typical taxpayers. According to their argument, the government should offer this relief by reducing tax rates or altering the tax slabs. The incoming budget, according to experts, should make various taxes more progressive and effective. The amount that can be excluded from income tax and the tax slab may both change.

WFH individuals to receive tax exemptions:
After the COVID-19 epidemic, working from home has become the new standard. Many are still doing it because it has been shown to be advantageous for both the company and the employee. Salary individuals who establish home-based businesses should receive tax exemptions under Budget 2023.

Increase in Income tax limit:
The maximum amount of tax that can be exempted under Section 80C of the Income Tax Act (also known as the Section 80C exemption) is Rs 1,50,000. This time, Nirmala Sitharaman is anticipated to grant the long-standing request of income taxpayers to boost it. Experts believe it can be raised to Rs 2,000,000.