FIVE INCOME TAX BENEFITS: MODI GOVERNMENT MAY ANNOUNCE ON JULY 5
The budget is just 1 day away and expectations of the common people is raised espacially the salaried class are quite high. The line with interm budget, they are expecting some relief in income tax limit, hike in standard deduction under the section 80 (C), tax exemption on housing loan interest rate, etc. The Union Budget in falling on 5th july 2019 so we have to see that the demands of of public mets in this budget or Finance Minister Nirmala Sitaraman ignores it.
commenting on the income tax related expectations Vivek jalan, co-founder, tax connect adviosry services said,"Consumer demand has shown sign of been slugging over the past year impacting the growth of the manufacturing sector.The budget needs to find out ways to put more money into the hands of people with an objective of boosting consumer spending as well as savings. In the interim budget the goverment has announced the tax rebate up to 5 lakh.However, the fact that the existing tax slabs were left unchanged meant that people with a taxable income of more than 5 lakh recived no benefits of this exemption.
5 steps that nirmala sitaraman may announce on july 5 are:
1. Existing standard deduction limit is rs. 1.5 lakh under section 80 C for certain investments/payments, which hasnt been changed in last 5 years. In this period there has been a considerable change and increase in the cost of living and the needs to boost savings.The finance minister nirmala sitaraman may increase the standard deduction limit at least rs.2.5 lakh per annum.
2. Change in tax slab so that income tax interets rates should be slashed from the current 20 per cent to 10 percent for the salaried class earning upto rs 10 lakh. This will boost savings and expenditure and the move would leave more disposal of personal income in the hands of the middle class.
3.Currently, the deduction for interest earned on savings bank deposits is allowed as a deduction only up to rs 10000 last year this limit was enhanced to rs. 50000 for all indiviuals.
4. The modi goveremnt is working to provide housing for all by 2022. to achieve this objective, the FM may increase the limit of deduction for payment of interest on housing loans from rs.2 lakh to rs. 3 lakh.
5. To boost more investments, STT (securities transaction tax) on purchase/ sale of stocks, mutual funds and other securities may get scrapped on july 5th.