According to information from the
Finance Ministry, the Government is giving serious thoughts about raising the
income tax exemption slab from the current Rs. 2 lakhs to Rs. 5 lakhs. The
information adds that Modi is planning to make the raising of income tax
exemption slab from Rs. 2 lakhs to Rs. 5 lakhs as one of the achievements of
his Government’s tenure. The Finance Ministry has, it seems, sought a report
regarding this from the Income Tax department. A number of other financial
incentives are also likely to be announced by the Modi Government.
The Government has also planned to
raise the tax exemption on housing loans. According to sources from the Finance
Ministry, there are also plans to increase the tax exemption on medical
insurance premium.
The reports add that Modi is trying
to impress as many people as possible with the very first budget that his
government is going to present. The demand for raising income tax exemption
level to Rs. 5 lakhs has been a long-standing one. Economists and experts
suggest that the slab be fixed in accordance to the current price and inflation
levels.
The long-standing demand of the
middle and salaried classes, to raise the income tax exemption slab to Rs. 5
lakhs from 2 lakhs, is being seriously considered by the government led by
Prime Minister Modi.
Based on sources from New Delhi, the
first budget of the newly formed Government is likely to be presented on the
11th of July. These sources say that the Finance Ministry has sought a report
from the Income tax department. The sources also add that the Government is
also planning to increase exemptions granted to housing loans and medical
insurance premium. If all these suggestions get implemented, then it would come
as a huge relief to the salaried and middle-class folks. Previously, Finance
Minister Arun Jaitley was considering raising the income tax exemption slab to
Rs. 3 lakhs.
Source: www.7thpaycommissionnews.in
