Mumbai, January 28: The Interim Budget 2019 will be presented on Friday, February 1 by Interim Finance Minister Piyush Goyal. This is the last Budget before Lok Sabha Elections 2019 and experts say that the Narendra Modi government is expected to announce tax cuts as well as various sops for farmers. It is also likely to be a populist Budget. Reports say that the Interim Budget is likely to bring more good news for the Middle class and upper middle class. Here's what people and experts are expecting from Budget 2019:
Income Tax Exemption Limit and 80 C
Reports say that the tax exemption limit is likely to be raised up to Rs 5 lakh in the Interim Budget 2019. As per reports, the Finance Ministry is mulling over increasing the tax exemption limit to provide immediate relief to the middle class. The current tax exemption limit is Rs 2.5 lakh. Get all the live updates of Piyush Goyal's Budget 2019 speech here.
As of now, those earning between Rs 2,50,000 to Rs 5,00,000 per annum are charged 5 per cent as income tax, whereas, those earning above Rs 5 lakh and below Rs 10 lakh are mandated to pay 20 per cent of their income in the form of tax. An annual income above Rs 10 lakh attracts 30 per cent income tax.
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Meanwhile, it is also being said that the tax savings limit under Section 80C of the Income Tax Act may be increased. A hike in housing loan exemption limit is also on the cards.
Agriculture and Farmers
There have been reports of the Modi government mulling a regular basic income scheme for farmers instead of announcing a farm loan waiver. Even as several states have announced farm loan waivers separately, it is being said that the government may also be looking at interest-free loans for farmers.
Industry body PHD Chamber has also said that it expects further reforms in the agriculture sector and rationalisation of direct taxes in the forthcoming interim Budget. "The last five budgets of the present government have focused on each and every segment of the economy. Going ahead, we look forward to the continuation of the dynamic reforms in the forthcoming budget also," PHD Chamber said in a statement.
Other Expectations
The upcoming Budget may also have provision for Rs 4,000-crore capital infusion for public sector general insurance companies to shore up their capital, say reports. As per reports, the Department of Financial Services sought Rs 4,000 crore in the Budget for fund infusion in three insurance companies -- National Insurance Company, Oriental Insurance Company and United India Insurance Company. Budget 2019–20: What to Expect in the Healthcare Sector? Expert Opinion.
Finance Minister Arun Jaitley, who was earlier scheduled to present the Interim Budget 2019, had to rush to the United States to undergo treatment as he was unwell. In his absence, Interim Finance Minister Piyush Goyal may present the Budget 2019.
(The above story first appeared on LatestLY on Feb 01, 2019 09:30 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).