In such a situation, the government can make some such provisions in this budget. So that the middle class people are not affected much. Marketing data and analytics company Cantor conducted a survey. In which most people believe that the government should make policy changes in income tax.

There will be change in income tax.

In a survey, consumer sentiments and Union Budget 2023 have been assessed. 1,892 consumers were included in this survey. In this, all types of people like salaried, business owners, apart from common man and rich class were included. It has come to light in this survey that people are also speculating about the announcement of policy changes in consumers and income tax.

Tax rebate will increase

The salaried class expects the basic exemption limit in income tax to exceed Rs 2.5 lakh. It has also been told in this survey that the highest tax slab rate of 30 percent can be increased from the existing Rs 10 lakh. In this survey, more than two-thirds of the people say that there should be an increase in tax rebate on investing under section 80C.

Discount on health insurance will increase

Apart from this, people in the survey have also told that the healthcare cost is increasing day by day. In such a situation, exemption should be given on medical and health insurance. Those people say that rising inflation has already affected the household income.

New thing came to the fore

After the Covid epidemic, people have become aware about health as most of the people involved in the survey say that continuous attention should be paid to healthcare. People in the survey have also said that the Indian economy is doing well. At the same time, people have said in the survey that in 2023 the Indian economy will move forward.

The post Income tax Basic exemption limit: Salaried people will get exemption on income tax, tax rebate will increase first appeared on Rightsofemployees.com.

The finance minister can announce this in the budget 2023. According to the exclusive news received by Zee Business from the Ministry of Finance, this time many gifts are going to come for taxpayers in the budget. The biggest gift in this is regarding the tax free limit. Means now taxpayers will have to pay less tax on their salary or say that more part of the salary will be tax free.

Income tax basic exemption limit may increase in the budget

In simple words, if a part of your salary up to Rs 2.5 lakh is tax free. No tax has to be paid on this. Those earning less than Rs 2.5 lakh are also exempted from filing income tax return. The country’s budget is to come on 1 February. In this budget, the tax free limit (Income tax basic exemption limit) can be increased. If sources are to be believed, the income tax free limit can be increased from Rs 2.5 lakh to Rs 3 lakh. In the existing rules, till now for the general public (taxpayers), there is no tax on income up to 2.5 lakhs. Whereas, for senior citizens, this limit is Rs 3 lakh. Talking about super senior citizen (80 years), then this limit is 5 lakh rupees.

Income tax basic exemption limit will increase after 9 years

This is the second term of the Modi government. The first term started in the year 2014. During that time, soon after coming to power, the government had given very good news to the taxpayers. The government had increased the income tax free limit (income tax basic exemption limit) from Rs 2 lakh to Rs 2.5 lakh.

But, since then there was no change in the income tax slab in the last 9 years. But, this year 2023 is the last full budget of the second term of the Modi government. In such a situation, everyone from economist to financial expert is assuming that the tax free limit will increase. Sources have claimed from Zee Business that this time the limit will definitely increase but only Rs 50,000 benefit will be given. The limit can be increased from 2.5 lakh to 3 lakh.

There can be a big change in Income Tax slab as well

If sources in the Finance Ministry are to be believed, there is going to be a change in the income tax slab this year as well. In the current income tax slab, income up to Rs 2.5 lakh is not taxed (Income tax basic exemption limit). Income between Rs 2.5 lakh to Rs 5 lakh is taxed at 5%. There is a direct tax of 20% on income between 5 to 10 lakh rupees. But, this year there can be a 10% tax cut for this slab. Means income up to 10 lakhs can be brought in the slab of 10%. Such a step can be taken to rationalize the tax slab. Income up to Rs 10-15 lakh can also be taxed at 15%.

When was the income tax slab last changed?

In the budget of the year 2017-18, the then Finance Minister late Arun Jaitley had reduced the tax burden on the income group from Rs 2.5 lakh to Rs 5 lakh. He reduced the tax on this slab from 10% to 5%. Under Section 87A of the Income Tax Act, 1961, the rebate was reduced from Rs 5,000 to Rs 2,500 for those earning between Rs 2.5 lakh and Rs 3.5 lakh. In such a situation, this time the expectation of increasing the income tax basic exemption limit is very high.

Current income tax slab

Income up to 2.5 lakhs: Tax free Income
up to 2.5-5 lakhs annually: 5% tax Income
up to 5-10 lakhs annually: 20% tax
Income above 10 lakhs annually: 30% tax

The post Tax free salary! Income tax limit will not be 2.5 lakhs, now it will be 3 lakhs, will get the biggest benefit till now first appeared on Rightsofemployees.com.