Income Tax exemption limit: Good news for taxpayers! Up to ₹ 5 lakh can be exempted in income tax

The preparation for the General Budget 2023-24 (Budget 2023-24) is going on in full swing. The government can give big relief to taxpayers in the budget to be presented in February next year.

In fact, industry body Assocham has demanded the government to double the income tax exemption limit in the next budget. Assocham has said that if the tax exemption limit is increased from the current Rs 2.5 lakh to Rs 5 lakh, then the demand will increase. This will boost consumption in the economy. At present, income up to Rs 2.5 lakh is not taxed for common citizens. This limit is Rs 3 lakh for senior citizens and Rs 5 lakh for super senior citizens (80 years).

Now companies are insisting on increasing capacity

Assocham President Sumant Sinha said that companies in sectors like steel and cement are now planning to increase capacity. Talking about the risks, he said that there could be a global recession and this would affect foreign trade. In such a situation, India’s GDP can also be affected.

In its pre-budget recommendations, Assocham said the government should raise the income tax exemption limit to at least Rs 5 lakh to leave more disposable income in the hands of the consumer. The industry body said that this should boost consumption in the economy.

Consumption will get a boost

Sinha said that due to the boom in both direct and indirect taxes, the government has enough scope to increase the income tax exemption limit. Assocham Secretary General Deepak Sood said that leaving more money in the hands of the consumer would encourage consumption, which would have a positive impact on economic growth.