If Nirmala Sitharaman really gave this exemption in the General Budget 2023, then how much would be the benefit, know

BusinessIf Nirmala Sitharaman really gave this exemption in the General Budget 2023,...
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If such an announcement is actually made in the general budget 2023, then every taxpayer earning more than Rs 5 lakh per annum will save at least 13,000 per year by including income tax and education cess (4 percent education cess) charged on it. Might be possible.

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New Delhi:

Every year the common man, that is the largest middle and lower-middle class of the country, keeps his eyes fixed on the general budget thinking whether he is going to get any exemption in income tax or not. The prescribed limit for getting income tax exemption is Rs 2.5 lakh per annum, beyond which your income becomes taxable, however, if the taxpayer’s taxable income remains less than Rs 5 lakh after all the calculations, then income tax It is exempted from tax by giving exemption under section 87A of the Act. At present, only that person has to pay income tax, whose taxable income, ie taxable income is more than Rs 5 lakh per annum. So, for the last few years every person of this class lives in the hope that perhaps this time the limit of tax-free income will be increased from Rs 2.5 lakh, but this has not happened.

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This year, finance experts are hopeful that the tax-free income limit could possibly be increased to Rs 5 lakh, which would provide some relief to the common man. Like every year, this time also Union Finance Minister Nirmala Sitharaman is going to present the general budget for the financial year 2023-24 on February 1, 2023, and it is expected that the focus of the government will be on the development of infrastructure, and that the common man Can also make some announcements giving relief to

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According to Goldman Sachs Group, the first intention of the government will be to reduce the fiscal deficit, and for this it can reduce its fiscal deficit target by 50 basis points for the upcoming financial year. According to media reports, a report authored by Goldman economists including Andrew Tilton and Shantanu Sengupta states that India will maintain its deficit at 5.9 per cent of GDP in the new financial year. According to economists, the central government of India will increase the expenditure on public welfare schemes while maintaining capital expenditure, and for this the focus can be on rural employment and housing scheme.

Apart from this, Goldman Sachs believes that the basic tax exemption limit of Rs 2.5 lakh given to every individual taxpayer can also be increased to Rs 5 lakh in the upcoming budget. Significantly, those earning below this limit do not even need to file income tax returns, and no change has been made in this limit since the year 2014-15.

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If this really happens, every taxpayer earning more than Rs 5 lakh per annum can save at least Rs 13,000 per annum by including income tax and education cess (4 per cent education cess) levied on it. By the way, it is worth mentioning that Indians whose taxable income is more than Rs 2.5 lakh but less than Rs 5 lakh, they still do not have to pay any tax, because they get exemption under Section 87A of the Income Tax Act. At present, income tax on income between Rs 2.5 lakh and Rs 5 lakh has to be paid only by those people whose total taxable income is more than Rs 5 lakh.

Apart from this, according to the report of Goldman Sachs economists, the central government may also increase the standard deduction in the general budget of FY 2023-24 from the current Rs 50,000 to Rs 1,00,000. Experts believe that the standard deduction should be doubled keeping in mind the ever-increasing cost of living and rising inflation.

If this really happens, then every taxpayer will also get its benefit. Those whose taxable income is Rs 5,50,000 so far will also start getting the benefit of Section 87A, and they will get an overall saving of Rs 23,400 (including Rs 13,000 to be given for income between Rs 2.5 lakh and Rs 5 lakh). (Includes Income Tax and Education Cess). Taxpayers earning more than Rs 5,50,000, whose income falls in the 20 or 30 per cent income tax bracket, will get a benefit of Rs 10,400 or Rs 15,600, respectively, in case the standard deduction is doubled.

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