On Wednesday (February 1), Union Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget 2023 to Parliament. Sitharaman is expected to announce some changes to the personal income tax system.
Income Taxes in Union Budget 2023: Limit for Section 80C Deductions It is likely that the deductions limit for Section 80C will be increased in the Union Budget 2023 from Rs 1.5 lakh to Rs 2 lakh.
Union Budget for 2023: Who is most likely to benefit?
The poor, farmers, and the manufacturing sector are expected to benefit the most from the Union Budget 2023.
Union Budget for 2023: New tax brackets: Are you well-versed in the Income Tax Act’s Section 80C?
Taxpayers can take advantage of the Income Tax Act’s Section 80C tax-saving option by investing in tax-saving investments to lower their taxable income. A maximum annual deduction of Rs 1.5 lakh from taxpayers’ total income is permitted under Section 80C.
Union Budget for 2023: Rates, slabs, and the new tax system: what are they?
In the Budget for the years 2021 and 2022, Finance Minister Nirmala Sitharaman implemented the new tax system. A person’s annual income of up to Rs 5 lakh is exempt from income tax under the new tax system, and there are no deductions available. The taxpayer is subject to income tax on the entire amount of Rs 3 lakh if their annual income exceeds Rs 5 lakh (income up to Rs 2.5 lakh is exempt under both regimes). Under the new system, the taxpayer cannot claim any deductions.
Union Budget for 2023: What were the old income tax rates and slabs like?
The old system allowed taxpayers to take deductions under Sections 80C, 80D, 80CCD, etc. to lower their taxable income in addition to the income tax exemption of up to Rs 2.5 lakh.
