- Date : 22/01/2023
- Read: 3 mins
What youth want from Union Budget 2023
India will go to the general election the next year, and this year’s Union Budget is expected to create a vote bank for the current government. Especially the youth of India has a lot of expectations from the Union Budget 2023 as they include newly added or potential taxpayers of the country.
Whether it is a hike in the threshold limit, an increase in the standard deduction or benefits on education loans, the country's youngsters expect this year’s budget to meet their financial concerns. Here’s a quick look at what they expect.
Hiking the PLI scheme for smartphones
In 2021, the budget introduced the Production Linked Incentive (PLI) scheme for Smartphones. The scheme offered an incentive of 1% to 4% over a period of four years.
For most youngsters, spending on high-end or premium Smartphones is a major expense. As such, in the latest budget, they want the PLI scheme to hike the incentive on smartphones to 5%.
Lower tax slabs and higher deductions
Though this has been an ongoing expectation in every budget, this year, the youth demand the change to happen, especially given the layoffs and salary cuts that have happened in the post-pandemic era. Thus, taxpayers are looking for a hike in the standard deduction, which will help them lower their taxable income. Moreover, they also expect the tax rates to be lowered so that lower tax is charged and they can save money.
Tax breaks on gig income
Gigs are quite popular among the modern youth as they allow them to pursue their passion or hobbies and prove to be an effective source of side income. This being the case, millennials are looking for tax benefits or deductions on income earned from gigs.
Removing LTCG on investments
In Budget 2018, Long-Term Capital Gains (LTCG) were introduced on investments. This LTCG taxed different types of investments which were earlier tax-free. The youth want the LTCG to be waived off from investments held over a long-term period to get tax relief on long-term investments. This would also motivate them to stay invested over a longer tenure and let their investments grow.
Simplified ITR filing process
The tax filing process, though digitized, still includes a lot of technical know-how lacking in non-finance graduates or taxpayers. Thus, they want the tax filing process to be simplified so that they can file their taxes themselves without resorting to the help of qualified professionals.
What the Union Budget 2023 will propose is a different matter altogether. But for now, the modern youth expect changes so that the budget helps them manage their finances better.