With just a few hours to go for the announcement of the Union Budget 2023, many are expecting relief in several tax-related components. It must also be noted that Budget 2023 will be the final budget presented by Prime Minister Narendra Modi-led central government.
Like every year, this year too, the people of the country have many special expectations from the General Budget. But will this budget meet the expectations of the people? Just one year before the Lok Sabha elections, this budget is also a big test for the Modi government.
PM Modi's words indicate that this time the budget will try to fulfill the expectations of the common people, that is, this time the budget can be populist. There are two reasons for this – one is that this will be the last full budget of Modi Government 2.0 before the Lok Sabha elections.
Therefore, the government will also try to make all sections happy in the general budget this time, especially the middle class of the country and the salaried class in it. The Finance Minister had recently said that she is aware of the pressure under which the middle class is running.
Here are a few predictions from the Union Budget 2023 –
- Under the new tax system, the income tax exemption limit on income up to Rs 2.5 lakh can be increased from Rs 2.5 lakh to Rs 3.5 lakh.
- Under Section 80C of the Income Tax Act, the exemption limit of Rs 1.5 lakh on investment can be increased every year.
- Under Section 16 (IA) of the Income Tax Act, the standard deduction limit of Rs 50,000 can be increased from Rs 50,000 to Rs 75,000 for the salaried class.
- The current limit for claiming health insurance under Section 80D is Rs 25,000. In this budget, the government will increase it to 50 thousand rupees.
This prediction of relief to taxpayers in the budget is also very likely to come true because the last change in the personal income tax slab took place eight years ago. Last year too, the salaried class had hoped that the exemption limit in the income tax slab would increase. But that didn't happen then.
According to sources of Zee News, employed people living in non-metro cities may increase the scope of the exemption in house rent allowance i.e. HRA. For people living in non-metro cities, the exemption on HRA is currently 40 percent of basic and dearness allowance, which can be increased to 50 percent.
Apart from this, the exemption limit of HRA every year for non-salaried individual taxpayers can be increased from Rs 60,000.
If you are planning to take an electric vehicle this year, then there may be some special announcements for you in this budget, especially about tax benefits on EVs. Here is the exclusive information that Zee News has gathered on this issue.
- Interest-free loan scheme on purchase of electric vehicles Which is currently in force till March 2023. It will be extended till 2025.
- Some time ago, GST on electric vehicles was reduced from 18 percent to 12 percent. In the budget, it will be further reduced to 5 percent.
- Along with electric vehicles, GST on car chargers may also be announced to be reduced from 18 percent to 5 percent. At the same time, there may be an announcement to reduce the tax on charging points.
It is expected that the Union Budget 2023 will cater to the middle-class people in India, with many such exemptions and tax-related facilities on the cards. The Union Budget 2023 can be a turning point for the Modi government and can please the middle class into voting for them once again in the 2024 general elections.
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