Budget 2023: Consumers expect change in income tax exemption limit, says survey

In an era of layoffs, economic slowdown and geopolitical turbulence, Indians have continued to remain cautiously optimistic about the upcoming Budget. According to a recent survey by marketing data and analytics firm Kantar, one in four Indians is concerned about the threat of job layoff while three out of four are worried about rising inflation. Half of them believe that the country’s economy will grow in 2023, even as some voice concerns about the global economic slowdown and a potential resurgence of COVID-19.

A significant number of people are hoping for an increase in the income tax exemption limit. Two-thirds also want to see an increase in the tax rebate for investments under 80C. Kantar found that consumers expect an announcement in policy changes with respect to income tax.

“Increasing basic income tax exemption limit (from current 2.5 lakh) is the most common expectation among consumers followed by the increase in the threshold limit of highest tax slab rate of 30 per cent (from current 10 lakh). The former is notably higher amongst the salaried segment (42 per cent) while the latter is expected more by businessmen/self-employed (37 per cent) and older 36-55 year olds (42 per cent) segments,” the survey found. 

The survey was conducted with a sample of 1,892 consumers aged between 21 and 55 years across 12 key Indian cities – Mumbai, Delhi, Chennai, Kolkata, Pune, Hyderabad, Bangalore, Ahmedabad, Indore, Patna, Jaipur and Lucknow.

While most people appeared to have a positive outlook at the macroeconomic level – with 51% convinced that the Indian economy will grow in 2023 – experts warn that the global economic slowdown might play spoilsport.

Most expect the government to play the role of a protector and take stringent measures to curb inflation to prevent the economy from slipping into a recession, as it directly impacts their household budget as well as their job prospects.

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(With inputs from agencies)

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