New Delhi: Union Minister of Finance & Corporate Affairs Nirmala Sitharaman held a series of pre-budget consultation meeting with economists, banks, financial institutions, industry chambers and stakeholders from social sectors. Also Read - 7th Pay Commission Latest News: Karnataka Govt Employees to Get 4.75% DA Hike Ahead of Diwali
In order to make the budget more inclusive and participative, the government had also sought suggestions from the citizens on the ‘mygov.in’ portal. Also Read - Direct Tax Target Realistic, Achievable: Revenue Secretary Ajay Bhushan Pandey
People have a lot of expectations, especially regarding income tax exemptions, from the upcoming Union Budget which will be presented on July 5. Also Read - 50 Days of Modi 2.0: NDA's Second Term Indicates Huge Transformation For Next 5 Years
The recent rate cut announced by the Reserve Bank of India (RBI) can be an indication of the changed stance of government to push the growth.
This changed stance, from “neutral” to “accommodative”, indicates that the government is ready to infuse more money in the market to spike the demand.
In the interim budget, the then Finance Minister had announced full tax rebate for income up to Rs 5 Lakh but the tax slab remained unchanged and that’s why the filing of the Income-tax return is still mandatory.
The 5 per cent tax on annual income above 2.5 lakh and below 5 lakh spikes to 20 per cent for the next slab of Rs 5 lakh-Rs 10 lakh.
The huge spike in the income tax slab could be rationalised and the basic exemption limit could be increased to 3 lakh.
The tax exemption limit for savings and investments under section 80C could also be raised from 1.5 Lakh to 2 Lakh in order to promote investment for economic growth.
Increment in the House Rent Allowance (HRA) could also be the scheme of things for some cities like Noida, Gurgaon, Pune, Bengaluru, as the house rent in these cities are quite high.