Finance Minister Nirmala Sitharaman in Lok Sabha, on February 1st, will be presenting the Union Budget for the year 2023-24. So, all eyes are on the coming budget, expecting that it could provide some relief on the taxable limit, especially for the middle class. Let’s check what are the major changes a middle-class taxpayer can expect from the coming Union Budget 2023.
Essential Expectations of the Middle Class From Union Budget 2023
Separate their Kid’s Tuition Fee Under the New Provision of Section 80C
Middle-class taxpayers have a demand and are expecting the Government to shift or separate their children’s tuition fees. Under a separate provision of Section 80C deductions of the Income Tax Act. Presently this provision has already a mix of many things including investments/expenses and it is capped at ₹1.5 lacs
Lower GST in Insurance Sector. If Happens
The insurance sector is expecting the Government to exclude life insurance and health insurance from the provisions of GST. Moreover, they also want that “there should be a larger deduction limit for health insurance premiums in Section 80D of the Income Tax.”
Increase Deduction for Health Insurance Under Section 80C
Under Section 80C of the income tax act, the middle class demanded to increase in the deduction from Rs 25,000 to Rs 50,000.
To Enable Measures to Create Jobs
Due to the unemployment state created by the Pandemic era, the middle class demanded the Government with the Union Budget 2023 to take serious measures to boost the massive employment ratio.
Change In Income Tax Slab
Speaking about middle-class taxpayers, FM Nirmala Sitharaman said “that she belongs to the middle class and can understand the pressure a middle-class family goes through. She said that the Modi government has not imposed any fresh taxes on the middle class. Sitharaman was probably hinting that a change in tax structure is unlikely this year.”