NEW DELHI: Basic income tax exemption limit, which currently stands at Rs 2.5 lakh, is likely to be raise in the Union Budget 2022-23, according to a pre-budget survey conducted by KPMG.
“On the individual tax front, most respondents i.e. 64 per cent expect an enhancement in the basic income tax exemption limit of Rs 2.5 lakh,” KPMG said in the survey report. When asked about the most anticipated change for individual taxpayers, 29 per cent wanted that the government to enhance the income limit of Rs 10 lakh at which the maximum marginal rate of 30 per cent tax is triggered, while 36 per cent hoped for an increase in the 80C deduction limit of Rs 1.5 lakh.
A small number of respondents i.e. 19 per cent are expecting an increase in standard deduction limit of Rs 50,000 for the salaried class, while 16 per cent expect tax-free allowances/ perquisites for salaried individuals keeping in mind work from home arrangement – provision of internet connection/ furniture/ ear-phones, etc.