This is the reason that the government is expected to present a populist budget, in which important announcements can be made for farmers, salary class, middle class people. Finance Minister Nirmala Sitharaman can make this important announcement in the budget for taxpayers and common people.

80C exemption on investment up to 1.50 lakhs

The Finance Minister had said a few days back that she understands the problems of the middle class. The government is considering increasing the tax exemption limit under 80C in the budget. It is believed that Finance Minister Nirmala Sitharaman may announce an increase in the 80C limit on the budget day. Savings and investment options like insurance, FDs, bonds, home loan principal and PPF come under 80C. At present, under 80C, an investment of Rs 1.50 lakh is exempted. Now it can be increased to Rs 2 lakh.

Standard deduction limit may increase

It is expected that the government may increase the standard deduction limit in the budget. From the year 2019, the standard deduction remains at Rs 50,000. It is believed that the government may increase it to Rs 1,00,000. Also, the government can increase the limit of income tax exemption. At present, income up to Rs 2.50 lakh is not taxed. The government can increase this limit.

Tax relief can be available on LTCG

Through Budget 2023, the government may provide relief in Long Term Capital Gain Tax (LTCG) to retail mutual fund and stock investors in the market. Removal of LTCG on equity will increase investment in equity. Currently, if the profit exceeds Rs 1 lakh in a financial year, then 10% long-term capital gain is levied on it. This time it is expected that the government can give some relief in this.

The post 80C Increase Exemption limit: Government may increase the limit of standard deduction, know the complete list here first appeared on Rightsofemployees.com.

There is a big opportunity for the government to make it populist. It is expected that many big announcements regarding income tax can be made in this budget. Sharekhan has released a report before the budget. In this, what are the expectations regarding personal income tax, it has been mentioned. The report believes that the government’s emphasis in the budget will be on capital expenditure, so that the economy gets a boost. There is little hope for policy reform.

Tax relief expected due to these 3 factors

Sharekhan said in his report that there are three major reasons for the change in income tax. Inflation is still intact and the fear of recession is increasing. The condition of the global economy is worse. Apart from this, there is an atmosphere of retrenchment all around.

In such a situation, the job market is weak. The burden of EMI on employed people is increasing separately. In such a situation, if the government gives relief to the income tax payers, then money will be saved in the hands of the people and consumption will improve. This will give a boost to growth.

What 5 major changes are expected in Income Tax?

1. At present, tax is not levied up to Rs 2.5 lakh. There is a demand to increase this limit to 5 lakhs.

2. From 2.5 lakhs to 5 lakhs, now 5% tax is levied. Under the old tax system, a rebate of Rs 125,000 is available. There is no rebate in the new tax system. There is a demand from the Finance Minister that 5 percent tax should be implemented from 5 lakh to 10 lakh.

3. At present, income up to 5-10 lakhs is taxed at 20% under the old tax system. There is a demand from the Finance Minister that its threshold limit should be increased to 10-20 lakhs and 20% tax should be imposed on this income.

4. At present, income above 10 lakhs is taxed at 30% under the old tax system. There is a demand from the government that the maximum tax rate should be reduced from 30 percent to 25 percent. At present, net tax on 30 per cent tax is 35.6 per cent including surcharge and cess.

5. The fifth demand is that at present the threshold limit for 30 per cent tax is Rs 10 lakh. be increased to 20 lakhs. Meaning, maximum tax rate should be implemented after Rs 20 lakh.

The post Income Tax Exemption! These 5 major changes can happen in Income Tax, common taxpayer will be benefited first appeared on Rightsofemployees.com.

Therefore, this time it is expected that Finance Minister Nirmala Sitharaman will give many gifts to the people this time. If sources are to be believed, there is a possibility of change in the current income tax slab in this year’s budget. Income tax payers also hope that in the budget, the government will try to woo the middle class by increasing the income tax limit.

Even in the last budget, it was expected that the government would give tax relief to the middle class. But, this was not done. Reviewing Budget 2022, TV Mohandas Pai, chairman of Aerin Capital Partners and renowned financial expert, said that Finance Minister Nirmala Sitharaman has turned the budget into a ‘transformational budget’ by not giving tax relief to the middle class. It is expected that this time the Finance Minister will not let this opportunity pass.

If the income tax limit is increased by changing the income tax slab, then the middle class will be benefited the most. The middle class faced the biggest problem in Kovid-19. Most of the jobs in this category went during the Corona period. This class also spent the most on health.

Now the Indian economy has recovered to a great extent from the effect of Corona. The income of the government is increasing. This has raised hopes that this time the government will definitely give tax relief.

In March 2022, Finance Minister Nirmala Sitharaman had told that a total of 8,13,22,263 people have filed income tax in the assessment year 2020-21 i.e. 2019-20 financial year. If we consider only four members in the family of an income tax payer, then there are 32 crore people, whom we can call middle class.

The middle class is the engine of consumption in the Indian economy. This is the population that buys cars and takes home loans. They are the main taxpayers of India and also the consumers.

Experts say that if the government increases the income tax limit by changing the income tax slab in the budget, then more money will come in the hands of the middle class of the country. This will also increase consumption. This will not only benefit the country’s economy, but BJP can also get political advantage in the general elections to be held in the year 2024.

The post Income Tax Slab Change: Big News! Income tax slab rate will change, tax payer will know full details here first appeared on Rightsofemployees.com.

But before the budget, the Finance Minister has given a big gift to the senior citizens. The rules have been amended for this. Fulfilling the promise made to senior citizens, the Finance Ministry has given information about this by tweeting.

what was said in the tweet

According to the tweet, senior citizens above 75 years of age, who have only pension and bank interest as their source of income, will get relief. Apart from this, there will be no need for them to file income tax. The round of discussions is going on before the budget 2022 regarding relief in income tax. Employed people are waiting for relief in the income tax slab. But before that good news has come for the elderly.

As announced in Budget FY 2022-23, senior citizens above 75 years of age, having only pension and interest income, are now exempted from filing Income Tax Return. #PromisesDelivered pic.twitter.com/iuyIzyQPnJ

— NSitharamanOffice (@nsitharamanoffc) January 5, 2023

Will get tax exemption

In the tweet, the Finance Ministry said that tax exemption has been given to elders above 75 years of age. Relief will be given to those people whose income is pension or interest from banks. For this, the government has added a new section in the Income Tax Act. In order to benefit citizens above 75 years of age, a new section section 194-P has been added by amending the rules of the Income Tax Act, 1961. Banks have also been informed about this amendment.

The Central Board of Direct Taxes has said that notification has been issued for the forms and conditions related to it. Along with this, necessary changes have also been made in Rule 31, Rule 31A, Form 16 and 24Q of the tax. The Finance Minister had also announced about this in the 2022 budget. Now the bank in which the elderly will have an account, the same bank will deduct whatever tax is made on their income. For exemption in tax return, senior citizens will have to fill Form 12BBA and submit it to the bank.

The post Big relief Taxpayers! Finance Minister gives relief to these people in income tax, check details immediately first appeared on Rightsofemployees.com.

In the current financial year also, due to the increase in Dearness Allowance (DA), the salary and pension amount of central employees were increased. After this hike is implemented from the pre-effective date, the arrears along with salary and pension are paid. In such a situation, changes in the tax slab are also bound to happen. In such a situation, tax relief can also be given on the payment of the outstanding amount. Come, let us know how to get relief from tax on payment of dues…?

The post Tax relief can be given even on payment of outstanding salary under 7th Pay Commission, know what is the way first appeared on Rightsofemployees.com.