Bhopal (Madhya Pradesh): Union budget will be presented on February 1, 2023. Middle class families and businessmen have certain expectations from the budget. As per 2014 tax slab introduced by Congress-led UPA government, income tax was nil on income up to Rs 2.5 lakh income. The income tax slabs increased thereafter. After it, the BJP-led NDA government came to power. New tax regime introduced in 2021-2022 still continues. As per this tax regime, all deductions have been withdrawn and Rs 50,000 relaxation has been given on investment in National Pension Scheme. Excerpts of what residents have to say.
Extend tax exemption
Chartered accountant Amit Ashati: Exemption for tax slab of Rs 2.5 lakh should be extended to Rs 5 lakh. At present, tax is imposed at rate of 5% if income is above Rs 2.5 lakh. Deduction limit from Rs 1.5 lakh to Rs 2 lakh under Section 80C of Income Tax Act is expected. The 80C allows deduction for investment made in PPF , EPF, LIC premium, equity linked saving scheme etc.
Rationalising LTCG
CA Suresh Wadwani: “Gain from sale of immovable property and unlisted share which have been there for more than two years, attract 20% LTCG. Government may look at rationalising long term capital gain (LTCG) tax structure as shares held for more than 1 year attract 10% tax and within 15% if held below 1 year. This may be rationalised.”
Lessen interest
Bhopal Chamber of Commerce and Industry spokesperson Ajay Devnani: Penalty, tax should be reasonable. Interest rate on MSME business is 11% to 12%. It should be around 5% as business suffered losses during pandemic. Similarly, over 42% surcharge on annual income of Rs 5 crore is too high and it should be rationalised. GST should be further simplified to make business easy.
Abolish professional tax
Madhya Pradesh Karmchari Sangh president Ashok Pandey: Professional tax of 22% should be abolished for salaried employees. Exemption on tax limit should be increased to Rs 5 lakh. Salaried class always has expectation to increase the limit of tax exemption.”
