Budget 2019: Income tax returns relief expectations soar; tax slab hike, medical allowance relief eyed
Demand to enhance income tax deduction from Rs 1.5 lakh to Rs 2.5 lakh under 80C to change in income tax slab has become talk of the town.
On the penultimate day of budget 2019 expectations of the common man are very high. Demand to enhance income tax deduction from Rs 1.5 lakh to Rs 2.5 lakh under 80C to change in income tax slab has become talk of the town. Apart from this, the Indian middle class is expecting some more tax benefits that can help them increase their saving and helping government to meet its long-term developmental goals.
Commenting on the matter Taranpreet Singh, TASS Advisors, Partner told Zee Business Online that given that this is a Central Election year, a common man may have some expectations. He said that everyone wants to pay lesser tax so that it has a larger take home cash for its earning.
"With this objective, a common man is looking for an increase in tax slabs to reduce their tax burden. From a salaried class who supports the largest kitty of tax collection for the Government, there is an expectation to provide them some tax advantage in terms of higher deductions for transport and medical allowance which was removed in the last budget and a standard deduction of Rs 40,000 was introduced. Given the current economic conditions, there is an expectation for a higher slab of standard deduction to meet the actual cost of transport and medical expenses," he said.
Singh added that in addition, there is a long-lasting demand to enhance the limit of deduction under section 80C from the existing limit of Rs 150,000 to Rs. 250,000. This will encourage more savings for a common man and in turn support the Government in meetings its long term development objectives.
The lowering GST revenue collection putting pressure on the fiscal deficit, which the Indian government plans to keep below 3.5 per cent of the GDP. It would be interesting to see how the Modi government meets the expectations of both middle class and the investors who are eagerly waiting for the D-day.