Gov should consider lower income tax slab: ASSOCHAM Secy General on Budget 2023
1 min read . Updated: 30 Jan 2023, 06:06 PM IST
PremiumAhead of the Budget 2023, ASSOCHAM's Secretary General, Deepak Sood, said the government should reconsider the current income tax slab for a lower slab. This will help people to save more
Keeping in mind the woes of middle-class income taxpayers, ASSOCHAM Secretary General, Deepak Sood, said the income tax structure should be reconsidered for a lower income tax slab in Budget 2023.
A lower income tax slab will ensure higher spending as well as investment. He also recommended a boost in the manufacturing sector based on the current economic scenario of the country, reported ANI.
“I think personal income tax from the lowest end to the highest end should be reconsidered for a lower tax slab. This will give more money in hands of people for spending and also for investment. Manufacturing should be scaled up," said Associated Chambers of Commerce and Industry of India's Deepak Sood to ANI.
Notably, the opinion of ASSOCHAM's General Secretary echoes with that of other industry experts, who believe that individual taxpayers can see a rise in the basic exemption limit.
It is worth noting that the government can also give some relief to the manufacturing sector by announcing some tax exemptions in the Union Budget 2023. There can be a special focus on the Electric Vehicle manufacturing industry.
Currently, there exist two different types of tax regimes for individual taxpayers. The first one is the old tax regime, and the second one is the new tax regime, which was introduced by the central government in FY 2020-21. The old tax regime follows 5%,20%, and 30% tax slabs. Whereas, the new tax regime is the government's attempt to simplify the taxation process by removing the role of incentives and deductions. People have to forego certain exemptions and deductions to opt for the new tax slab regime.
In addition to the rejig in income tax structure, the government can also mandate a certain amount of investment in tax saving instruments for taxpayers to avail exemptions. The salaried class can also see an extension in the limit of Section 80C limits. Section 80C plays a crucial role in people reducing their taxable income by using tax-saving instruments or claiming eligible expenses.
