Published On: Tue, Jul 2nd, 2019

Nirmala Sitharaman may increase income tax relief in 2019-20 Bbudget

India is going through lack of jobs phase and this is hurting people like never before. Amid such phenomenon, the country is keeping an eye on another Union Budget, which is to be presented by finance minister Nirmala Sitharaman on Friday, July 5.

The former defence minister will be presenting her first Budget and it is expected she may come up with some tax relief on income tax front, more than the relief announced in interim Budget earlier this year in February, before the Lok Sabha elections.

This year the economy has slowed down rapidly and analysts believe the budget could be pro-growth.

Ashok Maheshwary & Associates director of tax and regulatory Sandeep Sehgal said, “Many benefits for individual taxpayers were already introduced in the interim budget. Not much can be expected on that front in the coming budget exercise.”

A rise in tax exemption limit for individuals is expected on Friday’s budget. The current exemption is Rs 2.5 lakh and it may go up to Rs 3 lakh.

In 2014 Aruj Jaitley raised the exemption from Rs 2 lakh to Rs 2.5 lakh.

The tax exemption limit for savings and investments under Section 80C could be increased too in the July 5 Budget by Nirmala Sitharaman.

The current limit is Rs 1.5 lakh.

Nirmala Sitharaman 2019-20 Bbudget

Under Section 80D the current exception is Rs 25,000. It is expected this may go up to Rs 35,000.

The government may re-introduce tax-free bonds in the 2019-20 Budget.

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About the Author

- Paul Linus is an eminent online journalist who has been writing news, features and editorials on different websites from across the world for about a decade. He can be contacted at knowledgeherald@gmail.com

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