The rates might be changed so that a 30% tax rate would only apply to income over Rs 20 lakh. The federal government can think about reducing tax rates for lesser slabs. The government might take into account allowing section 80C deductions for specific circumstances.
The complex and wide-ranging tax laws governing capital gains tax might be difficult to understand. The holding period and tax rates used to calculate capital gains on various types of capital assets falling under the same asset class are currently inconsistent.
"A taxpayer may use more than 10 items to make a deduction claim under section 80C. The majority of people, especially those who are salaried, use all of their allowed Rs. 1.5 lakh in deductions by making mandatory PF contributions." said Kairos Capital's Rishad Manekia.
Deepak Sood, ASSOCHAM's Secretary General "The argument for extending the personal income tax exemption threshold to Rs 5 lakh is that it would put more money in the hands of middle-class consumers. Thus, the growth of the economy would be pushed by demand."
An employee in the private sector is entitled to a tax deduction for NPS contributions. They are eligible for tax deductions for both their own contributions and employer payments. The amount of the employer's NPS contribution that a government employee may deduct is higher.
" The prices of properties have climbed, and interest rates have likewise increased in the last few years. Over time, inflation has averaged between 6 and 7 percent. Now, Section 24(b) housing loan tax savings of up to Rs. 2 lacks should be enhanced", NoBroker.com's Akhil Gupta.
Chairman and CEO of CBRE for India, South-East Asia, the Middle East, and Africa, Anshuman Magazine "It is advised that this amount be raised to at least Rs. 4 lacks annually. Given that it is combined with other instruments, this tax deduction can also be completely relocated outside of Section 80C."
At the moment, the standard tax exemption threshold is Rs 3 lakh for senior citizens (those over 60 years old), and Rs 5 lakh for very senior citizens (those over 80 years old). According to experts, the basic income tax exemption threshold for seniors needs to be revised in the budget for 2023.
Limits under Section 80DDB, which deals with medical care, need to be revised. After the pandemic, medical expenses skyrocketed, and given the current rate of inflation, it would be prudent to increase the ceiling from the current Rs. 1 Lakh to Rs. 1,50,000.
The current limitations of Rs. 25,000 for individuals should be enhanced to encourage higher insurance premiums and better coverage. According to Tijo Joseph, CFO & Head Of Operations, Anand Rathi Insurance Brokers, the parental limit should also be raised.
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