Interim Budget 2019: Will Jaitley double I-T exemption limit to Rs 5 lakh?
The 2019 interim budget on February 1 is likely to bring some good news for
taxpayers. Ahead of 2019 Lok Sabha elections, Finance Minister Arun Jaitley may
double the income tax (I-T) exemption threshold for the salaried taxpayers from
the present Rs 250,000 to Rs 500,000, according to an IANS report.
With financial apathy on
the rise after demonetisation drive, this pre-poll sop tactic by the PM
Narendra Modi-led government is expected to benefit the middle-class segment of
the society. FM Jaitley may also reinstate a tax-free status for medical
expenses and transport allowance.
The demand to double the
I-T exemption limit to Rs 500,000 was made by the Confederation of Indian
Industry (CII) as one of its pre-Budget recommendations. The industry has also
sought an increase in the deduction under Section 80C to Rs 250,000 to
incentivise savings.
As the ruling BJP
government is trying to outline its economic policy vision to remain in power,
it would be interesting to see how these major changes could be made in the
interim budget or vote-on-account budget, considering that not too many policy
changes should be made.
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