6 Key Expectations From Salaried Employees This Budget 2023

Let’s take a look at some of the main expectations that salaried employees have for the upcoming budget 2023 reveal.

Reduction In Rate Of Income Tax

One of the main priorities and expectations of the salaried middle class is a flat reduction in the rate of income tax. In recent years, inflation and the pandemic have driven up the cost of living and people expect a respite in the form of a reduction in income tax rates.

Revision Of Income Tax Slabs

Salaried employees also expect relief from tax by the government restructuring the tax slabs to allow for a more relaxed income tax approach. For example, as per the old regime, the applicable tax of 30% could now be applicable from ₹20 lakh instead of ₹10 lakh as it currently is.

Increase In Deduction Limit Under 80C

Section 80C currently allows for ₹1.5 lakh deduction when investing in certain securities. The salaried employees also expect this limit to be raised to at least ₹2 lakh in the upcoming Union Budget 2023.

Increase In Limit Of Standard Deduction

Currently, salaried employees can claim a maximum deduction of up ₹50,000 in the form of a standard deduction. Many salaried taxpayers expect this limit of the standard deduction to be increased to ₹1,00,000 given the rising medical cost and inflation.

Work From Home Exemptions

Now that ‘work from home’ has become the norm for millions of salaried taxpayers, employees are also expecting deductions for certain work-related expenses like WiFi routers, increased internet plans and cellular coverage plans, increased electricity consumption and work-related purchases. 

Increase In Deductions For Home Loan Interest 

Currently, homeowners can claim a maximum deduction of ₹2,00,000 on the interest paid on their home loans annually under Section 24. Salaried employees and taxpayers expect this limit to be increased considering the increasing interest rates and the rising cost of real estate. 

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