Income Tax Limit In India : What if new tax exemption limit in India is increased upto 5 Lakhs in next financial year

Do we see Income tax Limit in India being changed and exempted limit increased in the next budget 2023-24? What will it prove for the economy, its benefits and effects for the people with exempted tax limit of 5 Lakhs?

As we are inching closer to the end of the year 2022, and with Christmas and New year 2023 right in the corner, finance enthusiasts already have an eye set on the preparations going on for the next years Budget 2023-24.

The next budget is supposedly to be presented in the month of February 2023. Expectations are that, the government may consider giving relief to its taxpayers in the next financial year.

As you read down further in this article you will get a better understanding of what are the pressures laying ahead of government for consideration, and how can higher tax exemption limit being benefits in the long run.

The Possibilities

In the current tax exemption rules, the limit of income that is kept out of taxation for the common citizens is 2.5 Lakhs. In the next category are the senior citizens who are exempted upto Rs 3 lakhs. In the next category of extremely senior citizens Rs 5 Lakhs is the exemption limit.

Now a demand has been made by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) to the government to double the general tax emption limit in the next finance budget.

According to them, this move of increasing the tax exemption limit to at least close to 5 Lakhs can boost the consumption demand in the economy.

What is ASSOCHAM

Assocham is The Associated Chamber of Commerce and Industry of India. It is a non governmental trade association and advocacy group. This group is based in New Delhi, India.

The main purpose and functioning of this group is for the representation for the interests of trade and commerce in India.

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Tax – Economic Growth Relationship

According to the President of Assocham, Mr. Sumant Sinha, the government now has enough scope and room to increase the tax exemption limit in India. Provided the fact that both direct and indirect taxes in the country are in boom.

The General Secretary of Assocham is on the opinion that if we leave more money into the hands of the real consumers, this will in turn encourage the consumers to indulge in more consumption.

This in a way or the other will provide a positive impact in helping the growth of the economy. Thus, more money in the hands of the consumers can prove beneficial in the long run.

FAQ’s

What is Assocham?

The Associated Chamber of Commerce and Industry of India.

When is the next budget of India?

The next budget for the financial year 2023-24 is expected to be placed before the nation in the month of February 2023.

Who presents the General Budget in India?

The General Budget in India is presented by the Finance Minister of India in the Parliament. ( Lok sabha ).

Who is the Finance Minister of India?

At present, The Finance Minister of India is Nirmala Sitharaman.

What is The Income Tax Limit In India?

In the current tax exemption rules, the limit of income that is kept out of taxation for the common citizens is 2.5 Lakhs. In the next category are the senior citizens who are exempted upto Rs 3 lakhs. In the next category of extremely senior citizens Rs 5 Lakhs is the exemption limit.

To conclude

Assocham, in its much valuable pre-budget recommendation opined that the government, regarding the income tax limit in india, should increase the exemption to at least 5 Lakhs.

According to them, increasing the income tax limit in India, should boost overall consumption in the economy.

Any move that intends to benefit the economy should be welcomed. Afterall the economy also reflects and impacts upon us directly. Stronger economy can provided raised life for the citizens.

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