This year's budget is aimed to support growth, generate jobs and provide a boost to the private sector without thinking about the pre-election perks to the common men.
A huge increase in capital expenditures will push the jobs opportunity. The target for fiscal deficits is set at 6.4% for this year. According to the new income tax rules, a person with an income of up to 7 lacks will face no tax, earlier it was 5 lakhs.
This increase in tax slab is to target the middle class, i.e., a person of the middle class will get extra disposable income in his hand.
Surcharges on high-income taxpayers have been lowered from 42.7% to 39%.
Budget 2023-24 has reduced the no of tax slabs, the basic exemption limit has been raised to 3 lakhs which were 2.5 lakhs earlier.
Under section 87A new limit for rebate has been raised to 7lakhs from 5lakhs.
Under the new tax regime, those earning more than 5 crores a year have to pay 25% surcharges which were 37% earlier.
From all these changes one can predict that the government intends to leave more money in the hand of taxpayers, which can lead to an increase in demand.
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