Budget 2023-2024: Govt May Set Tax-Free Income Slab to INR 5 lakh – ASSOCHAM has said that if the current limit of tax exemption is increased from Rs 2.5 lakh to Rs 6 lakh, there could be a surge in demand, which would give a boost to consumers in the economy.
- ASSOCHAM demanded the government regarding tax
- Demand to increase the tax limit in the upcoming budget
- Currently a limit of Rs 2.5 lakh for general citizens
The preparation of the fiscal budget 2023-24 is going on in full swing. The government may give a big relief to the taxpayers in the budget to be presented in February next year. Industry body Assocham has demanded the government to double the exemption limit in income tax in the upcoming budget.
ASSOCHAM demanded the government regarding tax
Assocham said that if the tax exemption limit is increased from the current Rs 2.5 lakh to Rs 5 lakh, the demand will increase. It will give a boost to consumers in the economy. At present, income up to 2.5 lakhs is not taxed for ordinary citizens. For senior citizens the limit is up to Rs 3 lakh and for super senior citizens (80 years) the limit is Rs 5 lakh.
Now the companies are emphasizing on increasing the capacity
Assocham Chairman Sumant Sinha said that companies in sectors like steel and cement are now planning to increase capacity. Talking about the risk factor, he said that there could be recession at the global level and it affects foreign trade. In that, India’s GDP can also be affected.
It is necessary to give money in the hands of customers for expenses
In its pre-Budget demand, Assocham said the government should raise the income tax exemption limit to at least Rs 5 lakh so that more money is left in the hands of consumers for spending. The industry body said it would boost consumption in the economy.
Budget 2023-2024: Govt May Set Tax-Free Income Slab to INR 5 lakh
Consumption can be encouraged…
Sinha said that the government has the possibility to increase the income tax exemption limit by raising taxes, both direct and indirect. Assochaim Secretary General Deepak Sood said that putting more money in the hands of consumers will increase the consumption rate which will have a positive impact on economic growth.