evidence: Union Budget 2023 expectations: The Income Tax exemption limit is currently Rs 2.5 lakh for the assessees. This means individuals earning up to Rs 2.5 lakh/year do not have to pay any taxes. Though taxable income up to Rs 5 lakh is also practically tax-free due to the rebate provided by Section 87A, income above Rs 5 lakh increases the tax liability of the individual taxpayer. Therefore, there is a demand for raising the income tax exemption limit from Rs 2.5 lakh to Rs 5 lakh. [...] The government should increase the exemption limit for income tax to at least Rs 5 lakh so that more disposable income is left in the hands of consumers and the economy gets a consumption boost and further leg-up in the recovery. Without accounting for rebates, the present exemption limit is Rs 2.5 lakh for the assessees, ASSOCHAM said in its pre-Budget recommendations. [...] Also Read: Revised Income Tax Slab Rates and changes in Budget 2023 – Here’s what Deloitte expects