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Assocham recommends before the budget, the government should limit personal income tax exemption to Rs 5 lakh

Personal Income Tax Slabs In Budget 2023: In the upcoming budget (Budget 2023), a big demand is being made from the Modi Government of the Center regarding Personal Income Tax Exemption. This request has been made by the Associated Chambers of Commerce and Industry of India, Assocham on Thursday. Assocham said that the personal income tax exemption limit should be doubled to Rs 5 lakh in the upcoming budget. The industry board said that this will give a lot of strength to the country’s economy.

no tax on such income

According to the Income Tax Rules, currently you normally do not have to pay any income tax on the maximum limit of annual income up to Rs 2.5 lakh. On the other hand, for persons in the age group of 60-80 years, this limit is available up to Rs 3 lakh and for senior citizens above 80 years of age, up to Rs 5 lakh.

Global recession may come

According to media reports, Assocham President Sumant Sinha (Assocham President) says that companies in sectors like steel and cement are now planning to increase capacity. Talking about the risks, he said that there could be a global recession and this would affect foreign trade. In such a situation, India’s Gross Domestic Product (GDP) can also be affected.

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What is the demand of Assocham

In its pre-budget recommendations, Assocham said that the government should raise the income tax exemption limit to at least Rs 5 lakh. This leaves more disposable income in the hands of the consumers. The industry body said that this will boost consumption in the country’s economy. Sinha said that with the boom in both direct and indirect taxes, there is enough scope for the government to increase the income tax exemption limit.

impact on economic growth

Assocham Secretary General Deepak Sood says, “Leaving more money in the hands of consumers will encourage consumption, which will have a positive impact on economic growth.”

Demand was made from RBI

Earlier, Assocham had appealed to the Reserve Bank of India (RBI) to at least increase the benchmark rates. Assocham said that the increase in interest rates should be kept to a minimum so that it does not adversely affect the process of economic reform. At the same time, RBI has increased the key policy rate by 190 basis points from May 2022.

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