Expectations from Union Budget 2023
It's almost time to turn the page on 2022 and start a new chapter, and taxpayers are counting down to the Union Budget 2023, amid high expectations. From entrepreneurs to corporate people, all eyes are on the union budget.
Due to the fact that this year's budget differs from previous declarations as the BJP government is nearing the end of its term, experts predict significant changes in the upcoming budget.
What can taxpayers expect from Budget 2023 ?
Taxpayers anticipate a change in the highest tax bracket threshold from 10lacs to 20lacs, as well as a reduction in the highest tax rates from 30% to 25%. Taxpayers want the 150,000 deduction limit under 80C reconsidered, and they expect it to be around 2 or 2.5 lacs. Considering the fact that the middle and lower middle classes are the most impacted by inflation and economic disruption. Taxpayers expects revision in deduction limits under section 80D as well considering the fact that medical treatments and expenses are high in the country.
National Pension Scheme (NPS):
Current tax laws allow a deduction for contributions made by the employer up to 10% of the salary of an employee. While the government contribution is 14%, taxpayers expect all rates to be consistent.
Current tax laws facilitate concessional tax systems for HUFs and cooperative societies. While that is not the case for LLPs and firms, they are taxed at a flat rate of 30%. As a result, the finance minister is expected to take favorable measures for LLPs and firms.
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