Budget 2023: What salaried class, taxpayers want from Modi government?

Budget 2023: Salaried class and taxpayers are optimistic about getting some good news in the form of changes in the income tax slabs when the Modi government presents the Union Budget in February next year for the financial year 2023-24. This is because there has been no change in the income tax slab since 2014. Also, there has been no change in the income tax rates since 2018, except that a new optional personal income tax system was proposed in the Budget 2020-21.

The Confederation of Indian Industry (CII) has suggested putting in place policies to rationalise income tax slabs and rates for individuals in order to raise consumption demand.

“Government should contemplate a reduction in the rates of personal income tax in its next push for reform as this would increase disposable incomes and revive the demand cycle,'' said Sanjiv Bajaj, President, CII in a media release.

According to tax expert CA Gauri Chadha, 5.83 crore taxpayers will be benefited if CII’s proposal is taken into consideration.

“If CII’s proposal is taken into consideration, 5.85 crore taxpayers will be benefited as there has been no major change in personal income tax rates and basic exemption limit for many years,” Gauri said.

India's Q2 GDP data to be released today: What estimates say

Experts Speak: 

What are the expectations from Budget 2023 in terms of income tax slab and rate?

According to Gauri Chadha, there will be changes in the new tax regime which was introduced in Budget 2020-21.

“The Government will try and make the new tax regime more lucrative as most people are still opting for the old tax regime. They might cut down the slab rates in the new regime a bit or allow certain common deductions in the new regime as well or allow businessmen to switch regimes every year like it is allowed to salaried class.”

Tax Expert CA Sunil Garg explaining why the new tax regime is not popular said that almost all the deductions were removed including the standard deduction.

“New tax regime did not get popular, as all the deductions were removed, even standard reduction. The new tax regime was proposed to serve the standard employees but with three main deductions– house rent allowance, Provident Fund, and standard deduction out of the picture; people did not opt for the new tax regime. These three main deductions should be retained.”

Click here to get more Stock Market updates I Zee Business live