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Last Updated: January 18, 2023, 17:08 IST
It is interesting to remind ourselves that in the first ever general budget of India post-independence, income up to Rs 1.5 lakhs was tax-free.
If the income tax limit is indeed increased, employed people and small-scale businessmen will benefit the most.
The Narendra Modi government, after it came to power in 2014, changed the income tax slab, increasing the limit. In the last 9 years, there has been no change in the tax slab. However, in the last budget to be presented by the government before the 2023 general elections, one can expect a further increase in the tax slab. Finance Minister Nirmala Sitharaman is expected to present the union budget for this year on February 1.
According to a report published in Reuters, the government is prepared to make changes in the income tax slab in this year’s budget. Two government sources from the Prime Minister’s Office were quoted by Reuters to report this development. This time, the income tax exemption limit may be raised from Rs 2.5 lakh to Rs 5 lakh, according to the agency. Reuters sent an email regarding this, but the Finance Ministry didn’t reply.
If the income tax limit is indeed increased, employed people and small-scale businessmen will benefit the most. Currently, no tax is payable on the income of up to Rs 2.5 lakh per annum. Income up to Rs 3 lakh for persons in the age group of 60-80 years and Rs 5 lakh for senior citizens above 80 years of age is tax-free. Increasing the slab to Rs 5 lakhs means that if you are earning Rs 5 lakh per annum, you will not be required to pay income tax.
It is interesting to remind ourselves that in the first ever general budget of India post-independence, income up to Rs 1.5 lakhs was tax-free.
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