Budget 2020 Income Tax: Salaried employees are eagerly waiting for good news in terms of income tax relief in the Budget 2020.
As the Union Budget 2020 is about to be presented by Finance Minister Nirmala Sitharaman, salaried employees are eagerly waiting for good news in terms of income tax relief. In the pre-budget 2020 India expectations as well as predictions, income tax rates in Budget 2020 have been one of the most talked-about subjects.
Experts have said that the Modi government will go for reducing income rates so that the taxpayer has more money in hand to spend that would, in turn, increase the consumption and put a positive impact on the economy post the Union Budget 2020.
Attempting to revive a sluggish economy, Finance Minister Nirmala Sitharaman is likely to pull out all stops in the budget to spur consumer demand and investment and set out a clear road map for achieving the ambitious target of USD 5 trillion economy by 2025.
Income tax exemption limit is likely to be increased from 2.5 lakh rupees to 5 lakhs as well as the announcement of a new tax slab of 10% may also be announced. An exemption for female taxpayers is also possible.
The government may also announce tax exemption on home loan interest to be increased from 2 lakh to 2.5 lakh and the tax deduction limit in Section 80C may also be increased from 1.5 to 2 lakh.
It is also possible that Budget 2020 will bring tax exemption only for houses built for rent.
However, some experts have also predicted that the Modi government will not announce any income tax cuts as it is doesn't have much fiscal room for such a measure.
Official data released on Friday showed that the government's fiscal deficit touched 132.4% of the full-year target at December-end mainly due to a slower pace of revenue collections.
The Government of India has received Rs 11,77,922 crores (56.6% of corresponding Budget Estimate (BE) 19-20 of total receipts) up to December 2019 comprising Rs 9,04,944 crore tax revenue (net to Centre), Rs 2,41,953 crore of non-tax revenue and Rs 31,025 crore of non-debt capital receipts. Non-debt capital receipts consist of recovery of loans (Rs 12,925 crore) and disinvestment proceeds (Rs 18,100 crore).
A lot is riding on the Budget as various sectors have their eyes set on Sitharaman and her box of mystery. The government is likely to announce measures for micro, small and medium enterprises (MSMEs) and may also announce some relief to individual income taxpayers.
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