The Union budget for 2023 will be released soon. The Union Finance Minister Nirmala Sitharaman will present her last full Budget of 17th Lok Sabha ahead of the General Elections to be held in May next year.
What should a common taxpayer do in order to make sense of the otherwise esoteric document Budget? For example, government’s higher allocation to a particular industry is sure to please a small section of people related to it but a salaried individual will ideally be more interested in what affects him/her directly.
So, here we give a lowdown on the different changes that you should look for after the Budget 2023 is announced.
Is there a change in the tax slab?
There are demands as well as expectations of some changes in the tax slab including the raising of minimum income that will fall under the tax slab. So, this is the first thing a taxpayer should actively search for, including the raising of minimum income that will fall under the tax bracket.
Currently there are two tax slabs. The old one where tax rate ranges between 5 percent to 30 percent for income brackets above ₹2.5 lakh and ₹10 lakh, respectively.
Then there is a new tax slab where tax rates range between 5 percent to 30 percent on incomes that are above ₹2.5 lakh and ₹15 lakh, respectively.
Whether tax exemption limit is raised?
There are expectations from multiple quarters to increase the tax exemption limit under section 80C from the existing limit of ₹1.5 lakh to a higher amount. So, any announcement or the lack of it is something you should actively looking for.
Whether there is a change in the capital gains tax rate?
If you are planning to sell a property, jewellery or even financial securities this year, you need to know the rules applicable in the sale of capital assets.
Currently, the sale of assets is considered long term capital gains when it takes place within 24 months (for fixed assets), 12 months (for equity) and 36 months (for debt and jewellery).
And the rate of tax applicable is 20 percent (for fixed assets), 10 percent (for equity) and 15 percent (for debt and jewellery). There could be more cohesion in the treatment of capital gains as the new rules come into force.
Additional tax deduction (s)
A common tax payer can explore whether a new tax deduction is introduced this time. For instance, there is an extra tax exemption for repayment of interest on education loan or home loan, among others.
Tax on crypto
Although the Finance Bill last year introduced 30 percent capital gains tax on virtual digital assets, but there could be more changes and/or announcements relating to cryptocurrencies this year. So, look for any change (if any) in case you are keen to invest in the digital currencies.
Where to look for?
Searching for the terms that explain the Union Budget and the Finance Minister’s speech on Google is passe and can even lead you to a wrong portal. Apart from accessing the speech on the official You Tube channel of ministry of finance here, one can access all the information on Mintgenie.
Alternatively, one can download the Budget’s mobile application and get access to all the documents at one platform.
Budget mobile app
All the fourteen Budget documents, which include the Annual Financial Statement (commonly known as Budget), Demand for Grants (DG), Finance Bill etc. as prescribed by the Constitution, will be available on the Union Budget Mobile App for the general public, said a statement by the ministry of finance.
The app will be available on both Android and iOS platforms. It can also be downloaded from the Union Budget Web Portal www.indiabudget.gov.in, it said.