Income Tax Slab Modification: Indians are always interested to see what the government will do for them in the Union Budget. The final full budget of the federal government will be Budget 2023 (Budget 2022).
Therefore, it is anticipated that Nirmala Sitharaman, the finance minister, will present the populace with numerous gifts this time. If sources are to be believed, the budget for this year may revise the current income tax slab. Income tax payers also hope that the government would raise the income tax threshold in the budget in an effort to court the middle class.
It was anticipated that the administration will provide middle-class taxpayers with tax reduction even in the previous budget. But it wasn’t carried out. TV Mohandas Pai, the chairman of Aerin Capital Partners and a well-known financial analyst, reviewed Budget 2022 and claimed that by denying tax relief to the middle class, Finance Minister Nirmala Sitharaman had transformed the budget into a “transformational budget.” This time, it’s anticipated that the finance minister won’t let the chance slip by.
The middle class will profit the most if the income tax threshold is raised by altering the income tax bracket. In COVID-19, the middle class had the greatest hardship. During the Corona era, the majority of the occupations in this sector disappeared. Additionally, this class spent the most on health.
The impact of Corona has now largely subsided on the Indian economy. The government’s revenue is rising. This has given rise to optimism that the government will finally provide tax relief this time.
Finance Minister Nirmala Sitharaman reported that a total of 8,13,22,263 individuals had filed income tax returns for the assessment year 2020–21, or the 2019–20 fiscal year, in March 2022. There are 32 crore people who can be classified as middle class if we simply take into account the families of those who pay income taxes.
The Indian middle class is the country’s main source of consumer spending. This is the demographic that borrows money to buy homes and autos. They are both the primary consumers and taxpayers in India.
According to experts, more money will end up in the hands of the nation’s middle class if the government raises the income tax threshold by altering the income tax slab in the budget. Consumption will rise as a result of this. In addition to helping the nation’s economy, this could give the BJP a political advantage in the general elections that will be conducted in 2024.