Interim budget 2019 is believed to be featuring measures to tackle farm crisis and offer some good tax benefits to middle class. It is not yet clear what tax concessions would be announced on Friday and sources argue some of the sops could be made available during first few months of the 2019-20 fiscal year and government may vow to extend if comes back to power again.
The tax rates tweak was expected in last year’s budget but the government refrained from doing citing fiscal implications. Currently the government needs more money to spend on earlier announced Ayushman Bharat scheme as GST regime is still taking longer time to settle down.
However, it is expected the government will deliver on the most-watched elements and senior minister Arun Jaitley had earlier indicated some initial steps would be taken to address immediate challenges confronting the economy.
It is believed the income tax exemption limit could be raised from Rs 2.5 lakh to Rs 3 lakh – Rs 5 lakh. The last raise was in 2014 by finance minister Arun Jaitley from Rs 2 lakh to Rs 2.5 lakh.
Market experts and analysts are expecting the Section 80C limit could be hiked to Rs 2 lakh or Rs 2.5 lakh.
“We can expect the government to consider revising this limit. With the due passage of time, this limit no longer holds good. An increase in Section 80C limit will help provide more room for tax saving,” said Abhishek Rastogi, partner at Khaitan & Co. Kuldip Kumar.
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