Salaried Employees Alert: ‘Income Tax Exemption Limit Likely to be Enhanced to Rs 5 Lakh’

Union Finance Minister Nirmala Sitharaman is expected to table Union Budget 2023-24 in the Parliament on 1st February, 2023. Income tax payers are pinning high hopes on Modi government to announce some tax related relief or change in income tax slabs.

For persons in the age bracket of 60-80 years, the exemption limit is Rs 3 lakh and for senior citizens above 80, it is Rs 5 lakh.

“Union Finance Minister Smt. @nsitharaman chairs her 1st #PreBudget2023 consultation with the first group of captains from Industry & experts of #Infrastructure and #ClimateChange, in New Delhi, today,” the Ministry of Finance said in a tweet. “The 2nd #PreBudget2023 meeting is being attended by MoS Finance Shri @mppchaudhary and Dr @DrBhagwatKarad ; Finance Secretary Dr T.V. Somanathan; Secretaries of DEA, @SecyDIPAM, DoR, @DFS_India, CEA Dr Anantha Nageswaran & Senior Economic Advisor @FinMinIndia,” it added. The participants gave suggestions on the 2023-24 Budget, which will be presented in Parliament by the Finance Minister on February 1.

The Union Budget will be presented on February 1. The Budget presentation begins at 11 am. The Budget is usually presented at the start of the Parliamentary session, which is known as the Budget Session. However, this year the Budget session is expected to start on January 31 even as the Budget presentation will be held on February 1. The Budget session will continue till April 6 with a recess in between. Since 2016, the Budget has been presented on February 1.

Who will present the Budget?

Just like the year before, Finance Minister Nirmala Sitharaman will be presenting the Union Budget. This will be the fifth time that Nirmala Sitharaman will present the Budget. Her Budget presentation speech lasted 1.5 hours in 2022. Her speech in 2021 was the longest in India’s history at 2 hours and 40 minutes. The average length of the Budget presentation is 1.5 hours to 2 hours.

A day before the Union Budget presentation, Sitharaman will also present the data from the Economic Survey of India in Parliament on January 31. The Economic Survey is a report that encapsulates the economic changes in the fiscal year and works as a sort of economic report card.

1 thought on “Salaried Employees Alert: ‘Income Tax Exemption Limit Likely to be Enhanced to Rs 5 Lakh’”

  1. Murthy Mukkamala

    Pensioners are being taxed at present. They have no “salary income”. What ever they get a monthly pension after retirement from service. So, the pension a pensioner gets is a part of his earlier salary on calculation as per the pension law. So, the pension given to a retired employee, is only amount of livelyhood allowed, to the service rendered by him until retirement. Hence, this amount should not be taken as income for the purpose of taxable income.
    At present, the amount of tax leviable, is calculated with basic pension, with the allowances. But, the allowances are the amount being paid to meet the expenses due to periodical price rise. Hence, this meagre amount should not be added to the pension for the purpose of tax calculation.
    Hence, the Govt. Is here by rquested 1. The tax being levied on pension may be toatally waived as it is not income but only the amount paid towards livelyhood.
    2. Or else, adding allowances to the basic pension, may pleased be stopped for tax calculation for the purpose.
    In the meanwhile, the age limit of 80yrs. now taken for total tax exemption may kindly be lowered atleast in view of the reasons, enlisted above sir. (Murthy Mukkamala).

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