The general budget will be presented on February 1 by Nirmala Sitharaman, the union's minister of finance. The government's final complete budget before the 2023 Lok Sabha elections is the Union Budget 2023. It is anticipated that the government would take advantage of this occasion to provide a budget that is focused on job creation and investment-driven development and is growth-oriented. This time, Nirmala Sitharaman, the finance minister, can also make some special provisions for the taxpayers.
The government created a new tax system in 2020 to streamline the tax filing procedure. The taxpayer has a choice between the new tax system and the old one. The government can alter tax slabs and tax rates to make the "new tax regime" more enticing, especially for the middle class. The government can lower the tax rate by 30 percent and 25 percent under the new tax system, according to the reports. The income tax exemption threshold can also be raised this time from 2.5 lakh to 5 lakh. If this occurs, there won't be any income tax due on earnings up to Rs. 5 lakhs each year.
Employed persons are looking forward to the government raising the tax exemption threshold for retirement plan investments. According to Section 80CCD (1B) of the Income Tax, the government may raise the exemption threshold from Rs. 50,000 to Rs.
The salaried class is exempt from income tax each year under Section 16(ia) up to a maximum of Rs 50,000 in standard deductions. The paid class anticipates an increase in this as well. He believes the government will raise the standard deduction cap from 50,000 to 75,000 rupees.
Farmers believe that the GST on items used in agriculture would be decreased or eliminated from the budget for 2023 as a result of their longstanding demands for these changes. On the other side, if this occurs, the farmers' production costs will rise, which would raise their income.
At present, marginal farmers get loans ranging from 1,0000 to 5,0000 thousand on credit cards at very low interest, where farmers use this money for the purchase of fertilizers, seeds, agricultural equipment. On the other hand, there has been a huge increase in the prices of fertilizers since the past years, in such a situation, the farmers demand that it should be increased so that it becomes easier for them to purchase them. At the same time, in the budget-2023, the limit of Kisan Credit Card is expected to increase.