Budget 2023 Expectations: While various industries are expecting key announcements with a focus on infrastructure to put the economy on the fast track, the middle class is expecting a big tax relaxation.
Budget 2023 Latest Update: As only a few days left for Union Finance Minister Nirmala Sitharaman to present Budget 2023, the salaried employees have high expectations from the Centre. Notably, this would be the last full budget before the country goes into general elections next year. While various industries are expecting key announcements with a focus on infrastructure to put the economy on the fast track, the middle class is expecting a big tax relaxation.
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Check key announcements that are expected from the Budget 2023 presentation:
Income Tax Exemption
The income tax exemption will allow more disposable income that will facilitate higher spending, and would help the economy recover from COVID pandemic. According to current tax slab, income up to Rs 2.5 lakh is exempted from any tax whereas earning between Rs 2.5 to Rs 5 lakh are liable for a deduction of 5 per cent. However, as the cost of living and inflation increase, the exemption seem to be little. At this time, the major expectations from the budget is increasing the tax exemption slab to up to Rs 5 lakh.
Low-Cost Credit For SMEs
The Finance Ministry is expected to announce a low-cost credit scheme for the medium and small businesses. Micro, Small & Medium Enterprises (MSMEs) also expect bg boost as they were among the worst hit during the COVID pandemic.
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Tax Relaxation for Home Loan
Currently, individuals can claim a maximum of Rs 2 lakh exemption per financial year on a home loan for a self-occupied property. Due to the soaring property prices over the past few years and rising inflation, the government could announce an extension of this limit by up to Rs 1 lakh to give relief to taxpayers.
Boost For Alternative Energy
As the natural resources are slowly coming down, the world is looking at alternative options for energy. During this Budget 2023, the Centre could announce tax exemption and other benefits to promote business working in alternate energy options.
