What you can expect from the Union Budget 2023
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
The Union Budget 2023 is scheduled to be presented on 1st February 2023 by our honourable Finance Minister, Smt. Nirmala Sitharaman Ji. Its an annual financial statement that outlines Government’s income and expenditure for a given fiscal year which typicallystarts from the 1st of April and ends on the 31st of March.
The union budget acts as a link between past policy choices and current economic realities, offering a glimpse into the government's future fiscal plans.
But what can you as an investor expect from the upcoming session? Read on to find out.
What to Expect from Budget 2023?
1. Increased Benefits on Health Insurance
In the previous budget, the National Health Protection Scheme (NHPS) was announced which offered tax deductions of up to ?50,000 on health insurance plans. This deduction was offered through Section 80D of the Income Tax Act. This year, the experts believe that the limit could be increased to encourage more people towards getting higher health coverage.
2. Higher Benefits for Mutual Funds
The government has actively encouraged investing in mutual funds through various initiatives. This includes permitting stock exchanges to accept AA-rated bonds as collateral. This time investors have expectations for mutual funds, such as -
* Allowing fund houses to launch tax-saving retirement schemes
* Allowing fund houses to launch tax-saving retirement schemes
3. Tax Incentive on Home Loans
With the repo rates increasing over the past few quarters, the burden on home loan consumers have increased. To reduce that, investors are expecting the government to bring some tax incentives for home loan buyers. The limit of tax deducation that can be claimed on the interest on a home loan is expected to increase up to 5 lakhs from ?2 lakhs
4. Exempt Pension for Senior Citizens
At present, the basic exemption limit for senior citizens is 3 lakh under the old scheme and 5% under the new one. However, investors are expecting full exemption of pensions for senior citizens. Some experts believe that waiving off tax on annuity income up to ?25,000 every month would further enhance old age security to a great extent
5. Higher Exemption on Interest on Savings Accounts
Section 80TTA provides tax exemption on interest earned from savings accounts to the extent of 10,000. However, industry experts are hoping that this limit could get increased. This is because the interest rates have fallen, thereby impacting individuals' savings adversely. Increasing this exemption can somewhat control the damage for taxpayers.
The government's budget has the potential to not only improve the economy across various sectors, but also benefit individuals through increased savings. However, there is much more to the budget than what is covered in this article. To know more about what you can expect from the Budget Click Here.
Angel One with its series #BudgetWithAngel will simplify the Union Budget on its YouTube channel through expert analysis for investors & traders,
Click here to check out their YouTube channel & subscribe for easy to understand Budget related videos.
Disclaimer: 1. This blog is exclusively for educational purposes
2. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit. https://bit.ly/2VBt5c5
