“Boosting consumption by leaving more money in the hands of the consumers, is a low hanging fruit for a further recovery in economic growth,” said Deepak Sood, Secretary General, ASSOCHAM.
However, experts do not expect any big changes in income tax regime or structure this year. “We do not expect larger-than-life sops and subsidies being announced but a well-calibrated sectoral allocation instead,” said Anand Dalmia, Co-founder & CBO of Fisdom.
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Budget 2023 Expectations LIVE: Hike tax deduction limit on home loan interest under Section 24 (b), say experts
“Currently, homebuyers can claim an income tax deduction on the interest paid on their home loan under Section 24 (b) of the Income-tax Act, 1961. The maximum amount of deduction that can be claimed is Rs 2 lakh per financial year for a self-occupied property. To boost demand of mid-and-affordable housing and provide some relief to the homebuyers, tax rebate on housing loan interest should be hiked to at least Rs 5 lakh,” said Piyush Gupta, Managing Director, Capital Markets and Investment Services, Colliers India.
Budget 2023 Expectations LIVE: What insurers want from FM this year
“Life insurance is a long-term solution, unlike other financial products which have a shorter investment horizon and are covered under the 80C provision. Currently, all financial purchases are clubbed under the same income tax deduction section 80C capped at Rs 1,50,000. We expect the Budget 2023 to consider creating a separate section for tax deduction on premium paid towards life insurance. This will enable an effective segregation of customer’s funds into long-term and short-term kitties,” said Subhrajit Mukhopadhyay, Executive Director, Edelweiss Tokio Life Insurance.
Budget 2023 Expectations LIVE: Higher deduction for interest on savings account, wants ASSOCHAM
“Section 80TTA of the Income-tax Act provides for deduction of up to Rs 10,000 for interest on saving bank account. However, this exemption is not available for interest on term deposits. Limit under section 80TTA of the Income-tax Act should be increased to at least Rs 30,000. Further, interest on term deposits should also be included within scope of section 80TTA of the Income-tax Act,” says ASSOCHAM.
Income Tax Budget Expectations LIVE: NPS deduction limit should be hiked, says ASSOCHAM
At present, the voluntary contribution of Rs 50,000 is allowed as a deduction under section 80CCD(1B) of the Income-tax Act. The deduction should be increased to Rs 1,50,000, says ASSOCHAM. The central government should encourage contribution to NPS by even private sector employees, since it would provide a social security net during old age of such employees. Hence, it is recommended that the quantum of deduction under section 80CCD of the Act should be increased for private sector employees to incentivize them contribute to NPS, says ASSOCHAM.
Budget 2023 Expectations LIVE: Budget should provide deduction for car, home and personal accident cover, say experts
“Currently, deduction under section 80C of the Income-tax Act is available for life insurance premium and a deduction under section 80D of the Income-tax Act is available for health insurance premiums. No such deduction for premium is available in case of travel insurance, home insurance or personal accident insurance policy. Deduction for insurance premium will encourage people to secure their assets like car, home, etc. and avail personal accident cover. This will aid in financial protection and secure the policyholder from any financial losses that may arise due to unforeseen events,” said ASSOCHAM.
Budget 2023 Expectations LIVE: AMFI wants uniformity in taxation on listed debt securities and debt mutual funds
The Association of Mutual Funds in India (AMFI) has laid out a set of proposals on capital gains taxation for Budget 2023-24. It requested for uniform tax treatment on capital gains from mutual fund investments and ULIPs of Insurance companies. “It is proposed to bring parity in tax treatment in respect of capital gains on withdrawal of investments in ULIPs of life insurance companies and redemption of mutual funds units, so as to bring about level playing field between ULIPs and MF schemes,” AMFI said.
Budget 2023 Expectations LIVE: GST rate on medical insurance should be reduced, say experts
In spite of pandemic, the health insurance penetration in our country is very low. Due to such a low coverage, the cost of insurance becomes high. In order to bring down its cost, GST rate should be reduced to 5 per cent from 18 per cent, said Rakesh Jain, CEO, Reliance General Insurance.
Budget 2023 Expectations LIVE: Proceeds of the pension/annuity should be made tax-free, say experts
“To increase the penetration of pension and to make India a pension society, especially since we don’t have any social security cover, our request is to make pensions tax-free in the hands of the customer because the pension premium is already paid through taxable income. So, we recommend that the proceeds of the pension/annuity should be made tax-free in the hands of the customer or to allow deduction for the principal component,” said Vighnesh Shahane, MD & CEO, Ageas Federal Life Insurance.
Budget 2023 Expectations LIVE: Why govt may make new tax regime attractive in Budget 2023
Income Tax Budget Expectations LIVE: Will govt tweak new income tax regime?
“Allowing exemptions and tax deductions in the new income tax regime would make it complex and this wasn’t the intention while introducing the scheme,” said one of the government sources, according to Reuters.
Income Tax Budget Expectations LIVE: Centre may tweak new tax regime, says report
Income Tax Budget Expectations LIVE: ICAI asks for tax incentive for electric vehicles in Budget
Issue:
As per Explanatory Memorandum, in order to avail the benefit of the deduction, one of the conditions specified is that the assessee does not own any other electric vehicle on the date of sanction of loan. However, this condition is not there in the section 80EEB of Finance (No. 2) Act 2019. This condition is in line with a similar condition of not owning any other house property on the date of sanction of loan as per section 80EEA, said ICAI.
Suggestions:
It is suggested that section 80EEB may be suitably amended so as to incorporate the condition of not owning any other electric vehicle at the time of sanction of loan as envisaged in the Explanatory Memorandum, said ICAI.
Budget 2023 Expectations LIVE: Virtual Digital Asset (VDA) clarifications required, says ASSOCHAM
“It is recommended that the government provides more guidance on what can constitute a VDA. The notification issued in this context has addressed certain doubts of stakeholders by way of carveouts. However, it is necessary to issue clarity on the meaning of the expression ‘generated through cryptographic means or otherwise’. This will bring clarity on the scope of the definition and avoid litigation on interpretational issues, said ASSOCHAM.
Budget 2023 Expectations LIVE: Modi govt has not levied any new tax on middle class in any budget so far, says FM
Ahead of the budget session in the Parliament, Union Finance Minister Nirmala Sitharaman on January 15, 2023, “I belong to middle class & identify myself as middle class so I can understand them. Modi govt has not levied any new tax on middle class in any budget so far. No tax levied on people who earn salary up to ₹5 lakh, (annually)”
Income Tax Budget Expectations LIVE: Exemption limit for capital gains tax could be revised, says expert
The government may also increase the amount of profits/gains which are not subject to tax since the exemption limit has not been changed (Rs 1 lakh) since its introduction in Finance Act 2018, said Shalini Jain, Tax Partner, People Advisory Services, EY India.
Income Tax Budget Expectations LIVE: Capital gains tax for listed REITs/InvITs under section 2(42A)
Justification: Currently, holding period for computation of long term capital gains on listed shares is 12 months. However, the period of holding for units of REITs and InvITs (which are also listed) to classify as long term capital asset continues to be at 36 months, says ICAI.
Budget 2023 Expectations LIVE: How govt could simplify capital gains tax rules
Further, applicable tax rate on profit/ gains from sale of such long-term capital assets may be unified to 10% without giving the benefit of indexation, says Shalini Jain, Tax Partner, People Advisory Services, EY India.
Income Tax Budget Expectations LIVE: How to simplify capital gains tax
The government may consider reducing the holding period of all equity shares and mutual fund units (whether listed or unlisted/ equity or non-equity) for qualification as long-term capital asset to 12 months, Shalini Jain Tax Partner, People Advisory Services, EY India tells ET.
Income Tax Budget Expectations LIVE: Budget 2023 could simplify and streamline capital gains tax rules
Budget 2023 could simplify capital gains tax, according to reports. The central government is considering changes to bring parity in rates and rules between public and private markets. The Parliamentary Standing Committee on Finance has recommended that the Budget should simplify and streamline capital gains tax rules across equity, debt, real estate, gold and mutual funds, as per media reports.
Income Tax Budget Expectations LIVE: Why PPF contribution limit should be increased in Budget 2023
PPF is used as a means of savings by entrepreneurs and professionals. While the assessees in employment have the compulsion of saving 12 per cent of their salary (with matching contribution from employers), the only safe and tax efficient saving option available for self employed assessees is PPF. Hence,the suggestion to increase the ceiling of PPF contribution to Rs 3 lakh. This may also boost the domestic savings as a percentage of GDP and will have an anti-inflationary impact. Further, the present limit of Rs 1,50,000 has not been increased for several years and requires reconsideration. The revised monetary limit will help in increasing the savings of individuals and is necessary keeping in view the rate of inflation, mentions ICAI.
Income Tax Budget Expectations LIVE: PPF contribution limit should be increased to Rs 3 lakh, says ICAI
The annual limit for contribution to PPF should be increased to Rs 3 lakh from the present ceiling of Rs 1.5 lakh, said Institute of Chartered Accountants of India (ICAI) in its pre-Budget memorandum.
Income Tax Budget Expectations LIVE | ET Consulting Editor lists out possible changes in personal taxation in Budget 2023
Budget Expectations LIVE: Budget 2023 is likely to continue to focus on capital expenditure as a growth driver and give an impetus to manufacturing while continuing with the post-pandemic fiscal consolidation. Finance Minister Nirmala Sitharaman will try to boost capital expenditure further from current 2.9 per cent of GDP to near 3.5 per cent. Budget 2023 might also rationalise personal income-tax rates to lift demand.
– Sonam Srivastava, Founder at Wright Research, SEBI Registered Investment Advisor
Income Tax Budget Expectations LIVE: 60% respondents want hike in tax deduction limit, shows survey
In a pre-Budget 2023 survey by Deloitte, the majority of 181 respondents across 10 industries said they were expecting “changes in personal taxation in the form of more tax exemptions and increasing deduction limits such as the interest deduction for house loans, to be most effective for individuals, which would give them more purchasing power and thereby increase demand (consumer) in the market.” Around 60% of respondents in Deloitte pre-Budget survey said they were expecting enhancements to the deduction limits in personal taxes.
The credit card business is a great barometer to judge the overall financial well-being of the society at large. It helps formalise the payments business, brings greater transparency, and broadens the tax net for the government while reducing the payment pain points around cash or other traditional modes of payment settlement. Government initiatives around payment of advance Tax or GST through credit cards is a much-needed welcome step in this direction, and we expect more such use cases to be built around the credit card ecosystem. UPI on credit card can prove to be a master-stroke, with a combo of instant payment and credit, and government focus on this through the Budget will be much appreciated. We expect the Union Budget 2023 to generate the tailwinds needed for credit card issuers to enhance their businesses and in turn have a multiplier effect on the nation’s prosperity and to help achieve our goal of becoming a $5 trillion economy.
– Shailendra Singh, MD & CEO, Bank of Baroda Financial Solutions Limited
Budget 2023 Expectations LIVE: Consumption expenditure rebate must be hiked to Rs 5 lakh, says PHDCCI
“Consumption expenditure rebate must be enhanced to Rs 5 lakh per annum. This will not only enhance the aggregate demand in the economy but also attract private investments, increase capacity utilization of the firms and create enormous employment opportunities in the economy,” said PHD Chamber of Commerce and Industry.
Income Tax Budget Expectations: Taxpayers want FM to hike 80C limit, shows survey
Most taxpayers want the deduction limit under section 80C of the Income-tax Act to be doubled, according to a survey by Kuvera, a Mumbai-based online financial planning platform.
Budget 2023 Expectations: Increase tax rebate to boost consumption, says PHDCCI
“To enhance the consumption in the economy, there is a need to increase the tax rebate benefits for consumption expenditure,” said PHD Chamber of Commerce and Industry.
Budget 2023 Expectations LIVE: Section 80C limit should be hiked, says ASSOCHAM
The limit of deduction under section 80C of the Income-tax Act, 1961 should be hike from Rs 1,50,000 to Rs 3,00,000, said leading trade association Associated Chambers of Commerce and Industry of India (ASSOCHAM) in its pre-budget memorandum. “The current limit needs to be revised with passage of time. A higher limit will promote savings and building of capital,” it added.
Budget 2023 Expectations LIVE: Interest on FDs of up to Rs 5 lakh should be tax free, demand banks
Banks want interest on fixed deposit of up to Rs 5 lakh be made tax free in Budget 2023. The Indian Banks Association (IBA) made a representation to finance ministry to make investments in fixed deposit of up to Rs 5 lakh tax free. This will make bank fixed deposits competitive against the other savings products, said a banker, according to ET.
Budget 2023 Expectations LIVE: Budget 2023 should simplify capital gain tax structure, says expert
A basic challenge that most individual investors have to deal with is the multiple tax provisions for taxation of capital gains for different scripts. Illustratively sale of listed shares that were held for a year would be considered long term and taxed at 20% while the sale of unlisted shares held for the same period would be treated as short term and taxed at applicable slab rates. The tax rate for taxing long-term capital gains on sale of listed shares is 10% but for unlisted shares its 20%. Given the different kind of scripts available in the market like shares, bonds, debentures etc. it will help if the provisions are simplified to reduce the stress on the investors, said Aarti Raote, Partner, Deloitte India.
Budget 2023 Expectations LIVE: 49% people want an ‘effective’ cut in personal income tax rates, shows ET online poll
Almost half the people surveyed (48.7%) say an “effective” cut in personal income tax rates is the one move that can make Union Budget 2023 a super-hit before the next general elections. For 27.1% of the respondents, more incentives to industry to spur local manufacturing will likely yield better results in this regard. About a fifth (19.9%) say that fixing India’s lingering jobs crisis will do the trick, shows ET online poll.
Budget 2023 Expectations LIVE: What people want, as per ET online poll
A pre-budget 2023 ET online poll of over 5,600 readers garnered divergent responses on a host of issues such as taxation, inflation, government finances, electric vehicles (EV) and China.
Budget 2023 Expectations LIVE: Will FM give some relief to middle-class taxpayers?
A hike in basic exemption limit, higher deduction limit under section 80C of the Income-tax Act, simpler capital gain tax structure, sops for homebuyers — these are some of the expectations of middle-class taxpayers ahead of Budget 2023.
Budget 2023 Expectations LIVE: Union Budget 2023 will likely be the last full-year one before 2024 general election
The Union Budget 2023 will likely be the last full-year one before the country goes to the election in 2024.
