Income Tax Exemption: Arun Jaitley Can Make These Five Announcements in Budget Speech
New Delhi, Jan 10: Finance Minister Arun Jaitley will deliver Budget 2018-19 speech in
Parliament on February. It will be the last full budget before 2019 general elections. According to reports, he might give tax benefits to the masses. Here are five speculations about what he might announce.
The government may also bring a new tax slab for people with income between Rs 5 and 7.50 lakh annually. These people are required to pay 20 per cent tax. The government may decrease their tax from 20 to 10 per cent.
Tax Benefits to Elderly
It is reported that the government may also give away sops for the elderly. People between the age of 60 and 80 may get tax exemption on income up to Rs 3.5 lakh, whereas people aged above 80 may get exemption on income up to Rs 5.50 lakh.
Tax Break under Section 80 C
Finance Minister Arun Jaitley may raise the tax break limit under Section 80 C from Rs 1,50,000 to Rs 2,00,000, a report said. The limit allows income tax exemptions for saving money in bank fixed deposits, insurance premium, and mutual funds for at least five years.
The government can change the capital gains tax and can re-impose standard deduction system.