Budget 2020: 3 things that the middle class definitely wants Centre to do
Middle class wants a higher income tax exemption for their incomes from the government, this Budget 2020
As the countdown for the announcement of the Narendra Modi-led government's Budget 2020 has started, speculations about the likely inclusions and omissions are already doing the rounds. The middle class which waits with a baited breathe to know what each year's annual budget has in offer for them, is having many expectations this time too. Zee Business brings some of those expectations before you.
1. Income Tax Exemptions
One of the biggest expectations of the middle class from the government is to increase income tax exemptions on their earnings. For citizens up to 60 years, zero tax up to Rs 5 lakh has been a long standing demand of the middle class. Even the senior citizens are expecting the exemptions to go up to Rs 5 lakh from the existing Rs 3 lakhs. Currently, a tax of 5% is levied on income between Rs 2.5 lakh and Rs 5 lakh.
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People in the income bracket between Rs 5 lakh and Rs 10 lakh are also expecting the current 20% rates to be slashed to 10% in the Budget 2020 announcement on 1 February.
There is no tax on the income up to Rs 2.5 lakh for an ordinary citizen, up to Rs 3 lakh for senior citizens and up to Rs 5 lakh for super senior citizens.
2. Section 80C Limit
Another important expectation from the Budget 2020 is enhancing of the limit of deduction under Section 80C of the Income-Tax Act, 1961. The current limit stands at Rs 1.5 lakhs and the expectations are to take it to Rs 2.5 lakhs. The deduction under Section 80C provides relief in investments such as Personal Provident Fund (PPF), fixed deposits, insurance, home loan repayment etc. This would also increase investments benefiting the government.
3. Long-Term Capital Gains
Last but not the least. The exemption on long-term capital gains from sale of equity and equity-oriented mutual funds should be increased from Rs 1 lakh to at least Rs 2 lakh.