Mumbai: Finance Minister Nirmala Sitharaman is all set to present Budget today, whereas reports suggest that it will be a beneficial budget for middle-class taxpayers.
According to the reports, the budget 2019-20 will increase the same fraction as declared in the interim budget, which in the current time to cover the inflation impact, to increase the limit of the original tax exemption limit for personal income taxpayers from Rs 2.5 lakh to 3 lakh.
In the interim budget, the government had offered a rebate on all due taxes, if any taxable income of a person is up to Rs 5 lakh per annum. But it kept the basic relaxation levels unchanged.
Apart from this, individuals will also be able to increase the income to save taxes, as a deduction from taxable income available under section 80C of the Income Tax Act can be increased to Rs 2 lakh from the current limit of Rs 1.5 lakh. An additional annual savings window of 50,000 rupees for the investment made in the National Pension Scheme (NPS), however, continues to increase the total savings under section 80C to 2.5 lakh rupees.
Meanwhile, the limit of the tax deduction on interest on a home loan can be increased to Rs 2.5 lakh from the current limit of Rs 2 lakh. But this increased profit will come with the return of deduction for interest on the second house which was previously allowed.
Also, like the expected Rajiv Gandhi Equity Savings Scheme for low-income group, there is a return of a scheme.
For the first time in the central budget of RGESS 2012-2013, retail investors were given a tax saving scheme announced for the purpose of encouraging small investors’ savings in the domestic capital markets. The budget is expected to launch again in 2019-20 with a new name and additional terms.
(With Agency Inputs)
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