Budget 2023: A Report Claims That 42% of Salary People Want to Raise the Income Tax Exemption Limit

Budget 2023: A Report Claims That 42% of Salary People Want to Raise the Income Tax Exemption Limit

The marketing analytics and data business Kantar has published the results of its second India Union Budget Survey.

Just before to its release on February 1st, Kantar said that this study tracks consumer views and expectations for the union budget 2023.

The atmosphere of the country is one of cautious optimism with the Russia-Ukraine conflict having no clear conclusion in sight, an anticipated downturn in Europe and the US, and 9 Indian states having assembly elections in 2023.

Important findings from the survey:

A cursory review of 2022 reveals that most urban Indians approved of the budget from the previous year, with 73% saying it had a beneficial effect on their family. At 80%, the businessmen/self-employed group was the most upbeat.

Even while there is optimism that the worst is past, the epidemic has not yet subsided, thus the majority (55%) still wants to see sustained emphasis on healthcare in this budget. However, this figure is far lower than the 66% from the previous year.

Consumers anticipate hearing about a change in income tax policy:

The most frequent anticipation among consumers is a rise in the basic income tax exemption limit (from the existing Rs 2.5 Lacs), followed by an increase in the threshold limit of the highest tax slab rate of 30%. (from current Rs 10 Lacs). The former is predicted more by the Salaried sector (42%) than by businessmen and self-employed (37%) or older 36-55 year olds (42%) segments.

Additionally, two thirds favor increasing the tax credit for investments made under 80C.

The second major request from consumers (45%) is an increase in the rebate on medical/health insurance due to growing healthcare expenses, which are exacerbated by inflation worries that are having an effect on family earnings. The paid group, at 49%, speaks out more in favor of this.

With rising oil costs and more frequent conversations about climate change and sustainable living, electric mobility is also moving beyond the status of a fad. The previous several years have seen a flurry of electric 2-wheeler and 4-wheeler debuts in India, and even more launch announcements at Auto Expo 2023 have renewed interest in this category.

However, customers will need incentives and infrastructure assistance in order to switch from conventional ICE automobiles to EVs. Naturally, this is another area where a larger financial allocation is anticipated.

As the third year of the new tax system option begins, it seems that people are increasingly making more informed decisions about it. In 2022, 15% of Indians were unsure about its use and advantages for them; by 2023, that number had dropped to 8%.

Currently, more over 50% of respondents say they support the new tax system, with support among the wealthy (60%) and salaried group (58%) being higher.

Most people are optimistic about the macroeconomic outlook:

In 2023, 50% predict that the Indian economy will rise, compared to 31% who predict a downturn. Non-metro areas are more upbeat than metro areas, at 54%.

By year's end, 55% predict that the Sensex will remain close to the 70,000 level. A sizable 40% anticipate it may also go beyond 70,000. More wealthy people (58%) and older people (36 to 55 years old) share this opinion.

Indians are most concerned about the global economic recession and a possible COVID comeback.

Three out of four Americans are concerned about inflation and want the government to take immediate action to combat it.

Every fourth Indian is likewise apprehensive about the possibility of losing their jobs. This is somewhat greater among the wealthy (32%), elderly (36–55 years old), and salaried groups (30%).

Indians are generally optimistic about the macroeconomic success of their nation in 2023, according to Deepender Rana, executive managing director-South Asia, Insights Division, Kantar. Older and wealthy class people have a great sense of faith in India's development narrative.

"The global economic slump, though, might be a hindrance. Since inflation has a direct influence on their family budget as well as their employment prospects, most people anticipate the government to act as a protector and implement strict measures to reduce it in order to save the economy from entering a recession. Consumers, as usual, are seeking some respite from income tax laws as well as an overall budget that is accommodating to the middle class, according to Rana.