The job profession looks most forward to the Union budget’s income tax exemption. On February 1st, 2023, Finance Minister Nirmala Sitharaman will announce the general budget.
The biggest hopes that individuals have for this budget are held by farmers and employed people. The current limit for income tax exemptions is Rs 2.5 lakh. In other words, a person making up to 2.5 lakh rupees per year is exempt from paying any type of tax.
Similar to the previous budget, crores of employed individuals are requesting an increase this time as well.
Tax-free income up to Rs. 5 lakh!
However, because of the exemption provided by Section 87A, a tax rebate is payable on taxable income ranging from Rs 2.5 lakh to Rs 5 lakh. According to the laws, income over Rs 2.5 lakh is subject to income tax.
However, the Ministry of Finance has exempted under section 87A the tax paid on income from Rs 2.5 to Rs 5 lakh. Thus, income up to Rs. 5 lakh is tax-free. However, if your income exceeds 5 lakhs, you must pay tax on all of your income over 2.5 lakhs.
A proposal to raise the exemption amount from income taxes to five lakhs
This is the rationale behind the continued call for an increase in the income tax exemption threshold from Rs. 2.5 lakh to Rs. 5 lakh.
The government has been presented with a recommendation by the Associate Chambers of Commerce and Industry of India (ASSOCHAM) to raise the threshold for income tax exemption from Rs 2.5 lakh to Rs 5 lakh.
You will receive more money in your hands if the Finance Minister accedes to this demand.
The news will be released on February 1st, 2023. Assocham has recommended raising the threshold for income tax exemption to at least Rs 5 lakh in a letter to the Finance Ministry.
More money will be saved as a result, which the average person may use. As a result, the market will grow faster and the average person’s ability to purchase goods will expand. If the Finance Ministry makes any decisions about income taxes, they will only be made public by the Finance Minister during the budget presentation on February 1, 2023.
Can the income tax exemption be raised?
In a previous interview with the media, Assocham President Sumant Sinha stated that a rise in both direct and indirect taxes would contribute to raising the income tax exemption threshold.
Deepak Sood, the secretary general of Assocham, claimed that giving customers more money will boost spending.
Read More: With iPhone Discount Offer, the iPhone will soon be in every pocket
|
|
  Facebook Page |
         Click Here |
|  Twitter       |
          Click Here |
| Â Instagram |
         Click Here |
| Â Google News |
         Click Here |
