budget 2023 with the union budget 2023 just around the corner the anticipation of relief in personal taxation is inevitable the incometax act 1961 act provides numerous deductions for individuals however the current limits of these deductions are quite low compared to the increased cost of living over the years some of the deductions exemptions for which the government could consider revision of limits arestandard deduction while introducing the standard deduction of rs 40000 in the union budget 2018 the finance minister observed that a major portion of the personal incometax collection was from the salaried class the standard deduction was subsequently increased to rs 50000 in the union budget 2019 while consumer price index inflation has moderated to 59 in november 2022 it was at a high of 74 in september 2022 as compared to 4 in september 2019 given the rise in the cost of living for individuals and since salaried taxpayers cannot claim a deduction for expenses incurred by them the government could look at increasing the standard deduction80c as a measure to encourage household savings certain prescribed contributions to life insurance provident fund pf savings instruments repayment of housing loan etc are allowed as a deduction up to rs 150000 under section 80c of the act the majority of this limit is usually utilised by the contribution to pf and principal repayment of housing loan thereby leaving other contributions spends unutilized this limit of rs 150000 was last revised in the financial year 201415 hence there is an expectation that the government may consider revising it to rs 250000 in the current union budgetalso read budget 2023 income tax why concessional tax regime is not popular among taxpayers 3 steps needed80ccd deduction is allowed for contributions to pension scheme of the central government such as national pension system as underwe have seen that the limit of rs 150000 is generally exhausted by the deductions under section 80c and may leave the taxpayers with little nothing to claim against their contribution under section 80ccd1 largely they are able to claim only the additional deduction of rs 50000 under section 80ccd1b for their own contribution to the pension scheme hence to provide some tangible benefit the government may reconsider increasing this limit for individuals80d an individual can claim deduction of rs 25000 for health insurance premiums paid for insuring the health of self or family and rs 25000 for health of the individuals parents if insured is a resident senior citizen the limit will be rs 50000 medical expenses for resident senior citizens are also allowed as a deduction up to a maximum of rs 50000 if they do not have a health insurance medical expenses have substantially increased over the years especially due to the global pandemic this has necessitated opting for health insurance plans with higher coverage and resultant higher premiums hence it would be beneficial for individuals if these limits are increasedalso read union budget 2023 income tax why fm sitharaman should hike