CA Manish P Hingar, Founder at Fintoo, was contacted by the spokesperson for an exclusive interview. According to his words, the Union Finance Minister is expected to present the Union Budget for the financial year 2023-24 in Parliament on February 1, 2023. Many income taxpayers, especially those who are salaried, are looking forward to the current government introducing tax reliefs or changing the tax slabs.
Budget 2023 Expectations
In the Budget, capital investment will be increased significantly, as the government hopes tax revenues in 2022–2023 will be robust enough to cover the increased expenditures.
The Union government currently exempts Rs 2.5 lakh from income tax, but is expected to hike that to Rs 5 lakh in the upcoming budget for 2023–24. So, consumers will have a greater disposable income if this is implemented.
Further, it would enhance consumption, which could also assist the economy in recovering, according to sources privy to the situation. Further, they added that the move would encourage investment as well.
Various tax rates apply to different businesses, and corporations want the tax rates to be uniform across all industries in order for India to become a hub for manufacturing and services. This will boost the manufacturing and industrial sectors as well as allow the services sector to flourish and expand.
A 35.4% increase in capital expenditure for the financial year 2022-23 was also announced by the finance minister, which equates to Rs 7.5 lakh crore, more than the Rs 5.5 lakh crore spent last year to boost demand.
About 35% of the Indian lending market is composed of personal loans and education loans. Under Section 80E of the Income Tax Act, education loan borrowers are entitled to an interest exemption limit on education loans. However, for personal loan borrowers, no such incentive or exemption is available. Therefore, it is expected that personal loan borrowers will also receive some relaxations in the upcoming union budget
As a result, the upcoming union budget 2023-24 may provide Indian taxpayers with incentives and exemptions that will increase their disposable income, which can be mobilized into greater investments and savings, leading to greater wealth creation for taxpayers.
Additionally, more people will be brought into the tax net. The government can expand its tax base by increasing exemption limits and making tax laws more flexible. A liberal system is likely to attract more tax payers according to the Department of Income Tax.
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