• Notification Date: 03-01-2023
• Notification No: N/A

Budget 2023 Expectations: Income Tax Exemption Limit to Rise to Rs 5 Lakh for Salaried Employees

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

As per an IANS report, sources privy to developments said that the government is expected to enhance the income tax exemption limit to Rs 5 lakh from the existing Rs 2.5 lakh in the forthcoming budget for 2023-24. 

The move is expected to leave more disposable income in the hands of consumers. It will also boost consumption, which may further lead to an economic recovery. The move would also promote investments, sources added further. At present, the maximum slab of income which is not chargeable to income tax is Rs 2.5 lakh. For individuals 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. 

Finance Minister Nirmala Sitharaman had kicked off pre-budget consultations on Nov 21, holding meetings with industry chamber heads and infrastructure experts about their expectations from the upcoming Budget. The meetings were held virtually and Union Ministers of State for Finance Pankaj Chaudhary, Bhagwat Kishanrao Karad, and other senior officials also attended the meeting. 

"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.