All eyes are on what the government does to ease the tax burden on citizens in Budget 2023. On income tax, the young working class is quite fond of electronic goods, gadgets, new cars and so it's a given that they would want reduced tax on these products, which would bring down the cost.
Income tax incentives or higher exemption limits are much anticipated by young professionals as this would lead to more disposable income and they can also save more.
Currently, young people strive towards upskilling and higher education for career growth. They are hopeful of lower interest rates on education loans and new initiatives under the Skill India programme from this Budget.
The Finance Ministry has seen proposals sent by government departments on specific steps that can benefit a large section of the middle class.
The government has not raised income tax exemption limit from Rs 2.5 lakh, which was fixed in 2014 by the then Finance Minister Arun Jaitley in his first Budget.
The standard deduction has remained at Rs 50,000 since 2019. People expect exemption limit and standard deduction need to be raised to compensate salaried middle class for high inflation.
Ms Sitharaman has said she is aware of pressures the middle class has raised; the middle class hopes that some incentives may come for them in the Budget.
Besides changing exemption limit and standard deduction, the Finance Ministry may look at the possibility of increasing limit under 80C, which includes investment in life insurance, fixed deposit, bonds, housing and public provident, among others.
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