The taxpayers of the salaried class are expecting changes in income tax slabs and reduction in surcharge from the upcoming Union Budget 2023-24. Let us tell you that the budget session will start on January 31 and Finance Minister Nirmala Sitharaman will present the budget on February 1.

1. More tax exemption on investment under 80C

Section 80C is the most important section for saving tax for the employed. Increasing the exemption limit under this section means that more and more people have to get relief. Please tell that at present, the exemption available under Section 80C is Rs 1.5 lakh. It is expected that in Budget 2023, under Section 80C, the government can increase the deduction limit to Rs 200,000 annually.

2. Standard deduction limit expected to be increased The standard

deduction limit for salaried employees under section 16 (ia) of Income Tax is Rs 50000 per annum. In the up
coming budget, it is expected that due to rising inflation, the government will change the provision of section 16 (IA) and increase the standard deduction limit to Rs 75,000 annually.

3. Change in tax

slab According to media reports, 25 percent tax is being demanded on income of more than 20 lakhs in tax slab. Similarly, there is a demand to increase the tax to 20 percent on the income of 10 to 20 lakhs. In the current tax slab, up to Rs 2.5 lakh is not taxed. 2.5 to 5 lakh is 5 percent, from 5 to 7.5 lakh is 20 percent tax. Similarly, 20 percent tax is levied from 7.5 lakh to 10 lakh. In which change has been demanded.

4. Deduction limit expected to increase

From Budget 2023, it is expected that the government may increase the deduction limit under Section 80CCD(1B) from Rs 50,000 to Rs 100,000 annually to encourage investment in retirement plans.

5. There will be a change in the 2 year old tax system

According to media reports, the government is considering increasing the tax exemption limit in the 2 year old tax system. This will give relief to taxpayers and they will have more money for investment.

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For the bright future of the country’s daughters, the government had started ‘Sukanya Samriddhi Yojana’ (Sukanya Samriddhi Yojana). This scheme was started under the ‘Beti Bachao, Beti Padhao’ campaign. Joining this scheme helps parents to bear the expenses for their daughters from education to marriage.

Get tax exemption on investment

Under Section 80C of the Income Tax Act, tax exemption is also available for investing in Sukanya Samriddhi Yojana. This means that by investing Rs 1.5 lakh every year, you can avail tax exemption. Apart from this, the returns received in the scheme are also tax free. By investing in Sukanya scheme every financial year i.e. till March 31, you can avail tax exemption for the financial year. During this time, if you join this scheme, you will get 7.6 percent interest.

When can the account be opened?

If your daughter’s age is less than 10 years then you can open Sukanya Samriddhi account anytime. This account can be opened with a minimum balance of Rs.250. Earlier, 1000 rupees had to be deposited for this, but now it is not so. Along with this, Rs 1.5 lakh can be deposited in Sukanya Samriddhi Scheme in any financial year.

Account can be opened in bank or post office

You can open this account in any post office or bank. It can be continued till the age of 21 years from the date of opening the account or till the girl child turns 18. After this, up to 50% of the amount can be withdrawn from this account for higher education when the girl child turns 18.

These are the important documents

Along with the birth certificate of the daughter, the identity card of the daughter and her parents/guardian will also have to be given.

The specialty of Sukanya Samriddhi Yojana

• In this scheme, you can invest only for the girl child from 0 to 10 years.
• At the age of 18, the girl child can withdraw up to 50 percent of the deposit amount.
• This account can be opened for a maximum of two girls in a family. Provided that in case of birth of twin/triple girl child, more than two accounts may be opened.
• The account can be opened with a minimum initial deposit of Rs.250 in a financial year.
• Lump sum or installments ranging from Rs 250 to Rs 1.50 lakh can be deposited in the account in a financial year. The amount to be deposited should be in multiples of Rs.50.
• Amount can be deposited in this till the completion of maximum 15 years from the date of opening of the account.
• If minimum Rs 250 is not deposited in an account in a financial year, the account will be treated as default account.
• Interest will be credited to the account at the end of each financial year.

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