Budget 2023 expectation: What middle class expect from FM Nirmala Sitharaman?

Union Budget 2023: Union Budget of India is the annual financial statement of the government for the upcoming fiscal year from April 1 to March 31. The Union Budget 2023 will be presented on February 1 by Finance Minister Nirmala Sitharaman.  

The Budget 2023 is expected to focus on infrastructure, manufacturing, agriculture and allied activities.  

Here is what is expected out of Union Budget 2023.

Union Budget 2022: Highlights

There was no change in income tax

The scope of tax exemption was increased in NPS

ITR was given a chance to rectify the error

Got a chance to update 2 year old ITR

Lower surcharge on LTCG, big taxpayers benefited

Crypto income taxed at 30% 

A disabled person given relief on the tax front

Startups were given relief on the tax front

Tax benefits are given to co-operatives

Union Budget 2023: Challenges

Global recession

Inflation concerns

Crisis between Ukraine and Russia  

Union Budget 2023: Expectations

Boost in capital expenditure

Focus on increasing savings

Export sector gets incentives

Domestic demand gets a boost

Union Budget 2023: Tax relief expected

Make the new tax system more attractive

Double the standard deduction from Rs 50,000

Simplify capital gains tax

Pension tax free

Union Budget 2023: New tax system

Need to popularize the new tax system

The benefit of deduction when coming into a new tax system

Very few tax benefits in the new tax regime

Many taxpayers prefer the old tax system

HRA, standard deduction, 80C etc. are not exempted in the new tax system.

Union Budget 2023: Capital Market - Investor's expectation

Equality is necessary in the rule of making an asset long term

LTCG exemption limit increased from Rs 1 lakh to Rs 3 lakh

Tax free limit on dividend income fixed

Uniformity in LTCG tax on debt securities

DLSS to be brought on the lines of ELSS

MF linked retirement scheme on the lines of NPS

FPI rules relaxed for NRIs

Union Budget 2023: DLSS on the lines of ELSS

DLSS ie Debt Linked Savings Scheme

Investment up to 80% in bonds, debentures of the company

5 year lock-in like tax saving FD

Small investors will be able to enter the bond market

Indian bond market will get strength.

Tax slab exemption increased

The taxpayer has the option of two tax systems

No tax in both on income up to 2.5 lakhs

12500 discount is also available in 87A

It is necessary to increase the tax exemption limit to 5 lakhs

The tax exemption limit was last increased in 2014.

Union Budget 2023: 80C-exemption extended

In Budget 2023, job seekers get tax relief

The exemption limit in 80C should be increased from 1.5 to 3 lakhs

24B exemption of 2 lakhs should be considered to 5 lakhs

It is necessary to increase the exemption to promote affordable housing