Budget 2023: These 10 changes in personal tax can be seen in the general budget, Finance Minister can announce – these 10 changes in personal tax can be seen in the budget 2023

tax can be reduced
This time a reduction in personal income tax is expected in the general budget. If this happens, the maximum relief will be given to the salaried class. If there is a cut in the personal income tax, then it will definitely increase the income of the people.

Big difference between corporate and personal tax
In Budget 2020, Finance Minister Nirmala Sitharaman had announced a new alternate tax regime with higher tax slabs and lower tax rates, but the new tax regime has not brought much relief to tax payers. Therefore, the demand for reducing the tax rate applicable to individual taxpayers still remains, as there is a huge difference between the corporate and personal tax rates.

Exceptional personal tax rate compared to other countries
If compared to other countries of the world, India’s highest personal tax rate is extraordinary. For example, Hong Kong has a maximum personal income tax rate of 15 percent, Sri Lanka – 18 percent, Bangladesh – 25 percent and Singapore – 22 percent.

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Basic exemption limit and deduction to be increased
Currently in India, income up to Rs 2.5 lakh is tax free for people above the age of 60 years. For taxpayers in the age group of 60-80 years and for those above 80, the exemption limit is Rs 3 lakh and Rs 5 lakh respectively. People are hopeful that this time the tax exemption limit will be increased in the general budget. This has been demanded for a long time.

Deduction under 80C and 80D should be increased
There are more than 80 million taxpayers in India. In this, the salaried employees are the biggest contributors to the taxes. Taxpayers are expecting relief in the form of either an increase in the basic exemption limit from Rs 2.5 lakh to Rs 5 lakh or a reduction in tax rates. Taxpayers also expect the deduction under section 80C and 80D to be increased. If this happens, taxpayers will get a lot of relief.

Expect relief in LTCG tax
This time in the general budget it is expected that the government should also provide LTCG tax relief to retail mutual funds and stock investors in the market through budget 2023. It would be beneficial to do away with LTCG on equity, which currently stands at 10%. If the capital gain exceeds Rs 1 lakh in a financial year, it would be good to have a tax exemption on STCG up to Rs 1 lakh.

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Tax deduction limit on home loan increased
People are also expecting an increase in the tax deduction limit on home loans. At present, the limit for deduction of interest on home loan is around Rs 2 lakh. With the increase in interest rates, it is expected that the limit will also be increased to at least Rs 3 lakh.

Expected increase in tax exemption limit on investment
The salaried class is expected to be given more tax exemption. People have hope that the Modi government can give relief to the salary profession. In 2014, the then Finance Minister Arun Jaitley last increased the tax exemption limit. The tax limit has not been increased for 8 years. This time there may be a change in the tax slab. It is believed that this time the existing tax limit can be increased to 2.5 lakhs. Experts estimate that the tax exemption limit can be increased to 5 lakhs. It is also expected that under 80C, tax exemption is available on investments up to 1.5 lakhs. The government can increase it to 2 lakhs annually.