No Tax On Income Up To 7 Lakhs, Centre Says New Tax Regime "Attractive"

The Union Budget 2023 is being presented by Finance Minister Nirmala Sitharaman. It is Ms Sitharaman’s fifth Budget since 2019. According to Article 112 of the Constitution, the government is required to present a statement of estimated income and expenses for each financial year, which runs from April 1 to March 31, to parliament. The industry expects key announcements to improve infrastructure and bring the economy on a fast track after a long period of slowdown in when the COVID-19 pandemic was at its most severe point. The middle class is hopeful the government would reduce taxes or at least increase the tax slab ceiling so that lower income groups who were earlier within the tax bracket are excluded now. A higher income tax exemption will allow more disposable income, leading to better spending and aiding the economy recover from the general slowdown amid the pandemic. The micro, small and medium enterprises (MSME) sector expects to hear about a low-cost credit scheme; it this happens, it could be a game-changer for the future of MSMEs in India. With soaring property prices over the past few years and rising inflation, the government could announce an extension of this limit to give relief to taxpayers. The exemption may boost the real sector's performance. The Budget will likely put deficit reduction ahead of vote-winning spending, even as Prime Minister Narendra Modi looks towards seeking a rare third term of office in 2024. Officials and economists say the large size of recent deficits and a need to gain investor confidence was forcing fiscal caution on the government, overriding the contrary priority of spending to support a weakening economy. In pulling back the deficit, Ms Sitharaman's budget will help hold inflation below the top of the central bank's target range, 6 percent.