Budget 2023: Personal taxation expectations

What can taxpayers expect from Budget 2023?

Feroze Azeez of Anand Rathi Wealth Management lists out what he thinks the FM should address in the upcoming budget.

Change in tax slabs: Tax rate of 30% should be reduced to 25%. Threshold limit for the highest tax rate should be increased from ₹10 lakh to ₹20 lakh.

Increase in 80C limit: Increasing the limit in section 80C to ₹2.5 lakh from ₹1.5 lakh will increase savings and increase investments in ELSS, NPS, PPF etc.

Increase in 80D limit: An increase in the limit under Section 80D for medical insurance premium will help increase penetration in the insurance sector.

Exemption in Long term capital gains: LTCG should exempted on Mutual funds if held for 5 or 10 years. This will increase the flow in mutual funds and people will stay invested in single fund for longer period of time.

Introduction of Debt linked saving scheme (DLSS): This product can be a debt alternative with lower Lock-in compared to current investment options like NSC which has a higher lock-in.