Budget 2023: What does salaried tax payers expect from Union Budget 2023

Budget 2023:There are high expectations among salaried tax payers from Union Budget 2023 and they are expecting that Government will tweak the alternate tax regime in order to make it more attractive for individual taxpayers.

Income Tax Slab expectations among salaried class Tax payers

• Upto Rs.2.5 lakhs – Nil
• Rs 2.5 lakhs to Rs 5 lakhs – Nil
• Rs 5 lakhs to Rs 7.5 lakhs – Nil
• Rs 7.5 lakhs to Rs 10 lakhs – 5%
• Rs 10 lakhs to Rs 12.5 lakhs – 10%
• Rs 12.5 lakhs to Rs 15 lakhs – 15%
• Rs 15 lakhs to Rs 17.50 lakhs – 20%
• Rs 17.5 lakhs to Rs 20 lakhs
• Above Rs 20 lakhs – 30%

Also Read: Naba Kisore Das: Odisha Health Minister shot in chest by police officer, rushed to the hospital | Details here

Housing Loan expectations

• Increase in deduction limit for interest payments and principal amount on home loans to spur demand in a rising interest rates scenario
• Deduction for interest paid on self-occupied house property
• Removing cap of Rs 2 lakh on set-off loss from house property against other heads of income
• Tax rebate on housing loan interest under Section 24 (b) needs to be hiked to atleast Rs 5 lakhs
• Extend HRA limits to home loans
• Extend HRA tax benefit to home loans

Section 80C of the Income Tax Act should be divided into six segments:

Education: Tax deductions for amounts spent on children's education

Parents’ Health: Tax deduction for the amount spent on parents’ health and insurance

Insurance: Tax deduction for the amount spent on health insurance and term insurance

Medical expenses: Tax deduction on the amount spent on medical treatment of major diseases for self and dependent family members and preventive health checkup.

Home loans: Tax deduction for EMI/ interest payments for loans taken for the purchase of property for self-use.

Donations: Tax deduction for grants given to NGOs working for social causes

Also Read: Budget 2023: What should the industry expect – MSMEs, Startups, Big corporates

For all the news updates subscribe to our YouTube channel ‘DNP India’. You can also follow us on FACEBOOK, INSTAGRAM, and TWITTER