Union Budget 2023 Five Major Announcements Expected From Modi Government

Union Budget 2023: This is the last full budget of the Modi government at the center before the general elections next year i.e. in 2024. In front of Finance Minister Nirmala Sitharaman, there is a mountain of expectations of the people of the country, but the challenge before Prime Minister Narendra Modi is that how much relief can he provide to the citizens of the country through the budget 2023 of the Ministry of Finance.

First expectation from the budget – lower income tax rates

Finance Minister Nirmala Sitharaman should revise the tax slab for the salaried class in the budget this time and reduce the income tax rates. There has been no change in the income tax rates since 2016-17, except for the adoption of the new tax regime which was exempt a few years back. It is expected from the government this year that in the new tax regime, some exemption will be given to the 30 percent and 25 percent tax slabs in income tax.

Tax experts want the government to make income tax free up to Rs 5 lakh, so that the common taxpayer can get some relief. At present, income up to Rs 2.5 lakh is tax free, which is being demanded to be increased to Rs 5 lakh. Apart from this, income up to Rs 7.5 lakh should be made tax free for senior citizens, which is currently Rs 3 lakh.

Second expectation from Budget – Non-taxable limit on equity LTCG

If you have made a profit of more than Rs 1 lakh from the sale of shares over a long period, then you have to pay long term capital gain. This category was completely tax free till the year 2004 as it was subject to Security Transaction Tax (STT). Now, on this, investors are expecting that there is little hope of removal of STT, but those who come under the limit of tax on sale of shares will have to pay tax on the limit of Rs 2 lakh instead of Rs 1 lakh.

Third expectation from the budget – demands for 400 more Vande Bharat trains under the railway budget

In the last budget, Finance Minister Nirmala Sitharaman had presented a plan to introduce 400 semi-high speed next generation Vande Bharat trains in the next 3 years. This year it is being said that apart from those Vande Bharat trains in India, there may be an announcement to bring 400 more such trains. The Ministry of Railways plans to change all high-speed trains in the coming times, including the names of trains like Rajdhani and Shatabdi. In this budget, the finance minister is expected to allocate some more money for these trains.

Demand to increase the limit of standard deduction

Taxpayers want the government to increase the standard deduction limit from Rs 50,000 to Rs 1 lakh in this budget. Experts also believe that there is a need to increase the standard deduction limit of Rs 50,000 in view of retail inflation and rising cost of living. The option of increasing the help on this front before the central government, if it is increased to Rs 1 lakh, then the general public can get good relief.

Limit on home loan deduction should be increased

Under Section 24 (B) of the Income Tax Act, taxpayers can avail tax exemption of up to Rs 2 lakh on the interest paid on the home loan. The limit of home loan deduction is only up to Rs 2 lakh and maximum deduction can be taken up to Rs 2 lakh in a year. There is a demand to increase this as well and the limit of this deduction may increase amid rising property prices.

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