Budget 2020 expectations: Top 5 things on common man's wish list
Budget 2020 is just a fortnight away and expectations are already building up for what could be in store for the common man. Increase in personal income tax exemption threshold and deductions under 80C of Income-Tax Act are few. Find out more!
Budget 2020: Just a fortnight to Budget 2020, and expectations are already building up for what could be in store for the common man. Finance Minister Nirmala Sitharaman had earlier hinted at providing some relief to the common man in the form of tax cuts. Top 5 things on common man's wish list:
1) One of the key expectations is the increase in the threshold level not under taxation from existing Rs 2.5 lakh to 5 lakh. This slab between 2.5 lakh and Rs 5 lakh invite a 5% tax. This would leave more disposable income in the hands of the people. People falling under the highest tax slab rate of them all are expecting at least a 5% cut from the existing 30% rate.
2) Enhancing the limit of deduction under Section 80C of the Income-Tax Act, 1961. The current limit stands at Rs 1.5 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) Medical expenses are also a big worry area for a common man. To make it more affordable and inclusive the government should consider increasing exemptions limit to Rs 35000 from current Rs 25000 levels. Expenditures made in this regard fall within the purview of Section 80D of the Act.
4) The government should also consider reintroducing the deduction for investment in Infrastructure Bonds with higher limits. Deduction for investments in Infrastructure Bonds was previously introduced in 2011 and later discontinued with. It allowed exemptions up to the investment of Rs 1 lakh.
5) 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.
These are some of the expectations of people from the Budget 2020. Will the government give these reliefs? Well, we will have to wait for 1 February Budget 2020 announcement.