Budget 2023 Top Income Tax expectations: It is expected that Budget 2023 will have some measures for the benefit of taxpayers as putting more money in their hands through increased deductions and tax-slab revision could positively impact several other sectors
Union Budget 2023 is the last full budget of the government before the 2023 Lok Sabha elections. It is expected that the Government will use this opportunity to announce a growth-oriented budget with a focus on job creation and investment-driven development. Budget 2023 may also have some measures for the benefit of taxpayers as putting more money in their hands could positively impact several other sectors. That said, following are the top five expectations related to Income Tax rule changes for the benefit of taxpayers from Budget 2023.
1. Section 80C Limit Change
Deduction under Section 80C of the Income Tax Act is the most common tax-saving avenue that taxpayers avail. This section covers PPF/EPF, ELSS, NSC, NPS, SSY, and more.
The deduction limit of Rs 1.5 lakh/year under Section 80C has not been revised since 2014. The Government is expected to increase this limit to at least Rs 2 lakh/year or Rs 2.5 lakh this year. Some experts have even suggested that this limit should be increased to Rs 3 lakh.