To double the income tax exemption limit to Rs 5 lakh in the coming budget so that the economy would obtain a rise in consumption, said the Industry body Assocham.
Rs 2.5 lakh is the max amount up to which no tax is levied at present. The exemption for people of age between 60 to 80 years would be Rs 3 lakh and Rs 5 lakh for senior citizens standing at the age of 80. Assocham President Sumant Sinha said that the steel and cement sectors would have started planning to surge their capacities. The GDP of India might be affected since there would be a downside risk, the world is in the phase of recession which impacts the external sector.
The government should surge the limit of exemption for income tax to at least Rs 5 lakh therefore more disposable income would be kept by the consumers hence boost in consumption shall be there which subsequently increases recovery.
The government should answer the proactive measures that the other countries would be discussed to assist the production of green hydrogen as India is the biggest producer of energy. Hence much more attention must be provided to green energy and sustainable industries.
Important: Salaried Individuals Expect More Tax Relief in Budget 2023-24
Deepak Sood, Secretary General, Assocham articulated that ‘”Boosting consumption by leaving more money in the hands of the consumers is a low-hanging fruit for a further recovery in economic growth,” said Deepak Sood, Secretary General, Assocham.
The investment must be promoted for such industries.
15% of the corporate tax rate for new investments in manufacturing can be provided to all sectors, along with the services, he added.
Also in the other relief measure, the same mentioned that the interest for the late GST payment must be diminished to 12% from 18%. “The penal interest rate of 18 per cent is too high, particularly for MSMEs,” it stated.
FM Nirmala Sitharaman will address the Union Budget 2023-24 in the month of February in Lok Sabha.
Due to higher demand in the steel and cement sectors, a capacity increase would be planned, while such areas would be laid into higher inflation if the plan does not get executed, Sinha specified.
Sinha stated the oil rates and the commodity prices would reduce which is a positive thing for the country. Talking about Production Linked Incentive (PLI) schemes the president of Assocham found that “there are clearly more applicants that are coming in than there is money to be allocated, not in all sectors but certainly in some sectors.”
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He recommended funds can be relocated between the PLI areas by the government. At a worldwide rate job, losses would happen in the technology sector.
The demand on a worldwide basis is sluggish and some firms are firing their employees. He added “It might go into other manufacturing sectors eventually but right now the front end is really in the tech sector and part of the reason is that the tech sector had hired a lot more ahead from where they were from a demand standpoint,”
