Budget

Published: Jan 21, 2023
Updated: Jan 21, 2023

Budget 2023: Expectations for Tax Reforms, Incentives for Homebuyers and Gig Workers and proposed work from home culture

As Budget 2023 approaches, there are high expectations for growth-oriented policies that increase spending in infrastructure, healthcare, and education, while also maintaining fiscal prudence and stability in tax rates. Additionally, there are specific demands for tax reform and incentives for various groups of taxpayers, such as homebuyers and gig workers.

Tax Slab Hike and Simplified Tax Regime: Expectations for Salaried Taxpayers

Salaried taxpayers are expecting the basic exemption limit of ₹2.5 lakh income to be raised to ₹5 lakh under both old and new tax regimes, given the current inflation. They also hope for a unification of the two regimes for a more simplified system.

Incentives for Homebuyers: Expectations for Deduction Limits

Homebuyers are calling for an increase in the yearly deduction limit on interest paid on housing loan EMIs from ₹2 lakh to ₹5 lakh, and an increase in the limit for principal amount paid under Section 80C from ₹1.5 lakh to ₹3 lakh.

Uniform Tax Structure for Capital Gains: Expectations for Investors

Investors are demanding a uniform tax structure for capital gains, as the current system is seen as complex and confusing.

Education Sector: Expectations for Tax Incentives and Subsidies

Educationists are expecting tax incentives and enhanced subsidies for private and public educational enterprises to boost their contributions to knowledge and research.

Healthcare: Expectations for Increased Deduction Limits

Many taxpayers, particularly those with the dual responsibility of looking after aged parents and paying for their children's higher education, are expecting a hike in the limits for deduction under section 80D to cover the rising costs of healthcare post-Covid.

Work from Home Allowance and Regulations for Layoffs: Expectations for the Gig Economy

In the gig economy, there are expectations for the government to simplify taxation processes for gig workers and for announcements to be made regarding regulations for layoffs and work from home allowances.

Overall, Budget 2023 is expected to address the needs of various groups of taxpayers and provide a boost to the economy through growth-oriented policies and targeted incentives.