New Delhi, July 4: With barely 28 hours remaining for the Finance Minister Nirmala Sitharaman's pandora box to open in the Parliament, Indian taxpayers have kept their fingers crossed, thinking their wish for exceed in the current basic income tax exemption limit for an individual might be raised above current Rs 2.5 LPA in the Union Budget 2019-20.

Various surveys are being conducted by market leaders across the nation, depicting their high hopes on the ruling dispensation for a tax rebate and raise in exemption limit. According to Industry chamber Assocham, the Union government should raise the basic exemption limit to Rs 5 Lakh/Per Annum (LPA) from Rs 2.50 LPA. Union Budget 2019 Predictions: Finance Minister Nirmala Sitharaman to Open Pandora Box on July 5; Here's What to Expect

In the Interim Budget 2019 - presented by Union Minister Piyush Goyal - a rebate of Rs 12,500 will be available for taxpayers with taxable income upto Rs 5 LPA. Though the IT slabs and rates for FY 2019-20 remained unchanged, taxpayers can claim the rebate under Section 87A of the IT Act until the amount mentioned. Along with this, Goyal had made a proposal to hike in a standard deduction by Rs 10,000 - Rs 50,000 from current Rs 40,000.

Here's What Union Budget 2019 Predictions Say:

However, the IT exception limit has been divided into three age groups for resident individuals - below 60 years, between 60 to 80 years and above 80 years.

Here's Current Income Tax Slabs And Rates:

Income Slabs (Individual below 60 years of age) Tax Rates Income Slabs (resident & above 60 years but below 80 years) Tax Rates Income Slabs (resident & above 80 years) Tax Rates
Total income up to Rs. 2.5 Lac NIL Total income up to Rs. 3.00 Lac NIL NA NA
Total income exceeds Rs. 2.5 Lac but less than Rs.5 Lac 5% on amount exceeding Rs. 2.5 Lac Total income exceeds Rs. 3 Lac but less than Rs.5 Lac 10% on amount exceeding Rs. 3.00 Lac Total income up to Rs. 5 Lac NIL
Total income exceeds Rs. 5 Lac but less than Rs.10 Lac 20% on Income exceeding Rs. 5 Lac + Rs. 25,000 Total income exceeds Rs. 5 Lac but less than Rs.10 Lac 20% on Income exceeding Rs. 5 Lac + Rs. 20,000 Total income exceeds Rs. 5 Lac but less than Rs.10 Lac 20% on Income exceeding Rs. 5 Lac
Total income more than Rs. 10 Lac 30% on Income exceeding Rs. 10 Lac + Rs. 1,25,000 Total income more than Rs. 10 Lac 30% on Income exceeding Rs. 10 Lac + Rs. 1,20,000 Total income more than Rs. 10 Lac 30% on Income exceeding Rs. 10 Lac + Rs. 1 Lac

Market experts are expecting an increase in tax deduction limit for interest on housing loan for self-occupied properties from the present Rs 2 Lakh. Apart from the current tax slab and a tax exemption limit set by Union government under Rs 5 LPA, experts opine the ruling dispensation should think about increasing the tax exemption limit and decrease the set rates by at least 5% under each category, i.e. in Rs 5 LPA but less than Rs 10 LPA and more than Rs 10 LPA. Budget 2019: Income Tax Exemption Limit Would Be Raised by Modi Government, Says Survey

Also, experts from KPMG opine that major developments should be considered while framing tax slabs and a re-look at the rebate under various section like 80C, 80TTA, 80TTB, 80CCC, 80G, 80CCD, and others be looked upon. As Goyal had previously announced a full tax rebate for individuals earning up to Rs 5 LPA by claiming it under 87A for taxpayers and thus effectively pay zero tax annually, Sitharaman's job has become more difficult.

Here Are Some Guidelines to Save Income Tax Under Various IT Sections:

The Union Minister has a long road ahead as the debate over GDP growth, fiscal deficit, declining export, agrarian crisis, high taxes, distress in academics, among others are escalating. As India's rural economy is stressed, unemployment rate plunging and fiscal deficit on the brink, expectations from Sitharaman and team are peaking each hour too.

(The above story first appeared on LatestLY on Jul 04, 2019 07:05 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).