Union Finance Minister Nirmala Sitharaman is set to table the Union Budget 2023 in Parliament on Wednesday (February 1). It is expected that Sitharaman would announce some modifications to the personal income tax regime.
Union Budget 2023 Income Tax: Deductions Limit Under Section 80C
It is likely that the deductions limit under Section 80C will be raised in Union Budget 2023 as compared with Rs 1.5 lakh currently.
Union Budget 2023: Who is likely to gain the most?
It is expected that poor, farmers and manufacturing sector would gain the most from Union Budget 2023.
Union Budget 2023: New Income Tax slabs: Know all about Section 80C of the Income Tax Act?
Section 80C is a tax saving option in the Income Tax Act and it is very beneficial for taxpayers as it allows them to reduce taxable income by making tax saving investments. As per Section 80C, a maximum deduction of Rs 1.5 lakh annually is allowed from the total income of the taxpayers.
Union Budget 2023: Income tax rates, slabs, what is new tax regime?
The new tax regime was introduced by Finance Minister Nirmala Sitharaman in the Budget 2021-22. According to new tax regime, no income tax is levied on an annual income of up to Rs 5 lakh, without any deductions. If the annual income of the taxpayer is more than Rs 5 lakh, then income tax on the whole Rs 3 lakh is levied (income up to Rs 2.5 lakh is exempt under both regimes). The taxpayer cannot claim any deduction under the new regime.
Union Budget 2023: Income tax rates and slabs, what is old regime?
In the old regime, the income tax is exempted up to Rs 2.5 lakh, and over and above this, the taxpayer is allowed to claim deductions under Section 80C, 80D, 80CCD, etc, to reduce taxable income.
