Budget 2019: Income Tax Exemption Limit Would Be Raised by Modi Government, Says Survey
A whopping 74 per cent of the respondents felt that the government would raise the income tax exemption limit.
New Delhi, June 30: The Modi government may raise the current basic income tax exemption limit for an individual income taxpayer from Rs 2.5 lakh in the Union Budget 2019-20, according to a KPMG survey. The KPGM conducted a survey which includes responses from 226 respondents spanning across industries. A whopping 74 per cent of the respondents felt that the government would raise the income tax exemption limit.
According to the survey, 58 per cent said the government would consider a new 40 per cent tax slab for those earning above Rs 10 crore annually. Industry chamber Assocham also said the government should raise the basic exemption limit to Rs 5 lakh from Rs 2.50 lakh. "Considering the inflation over the years, tax exemption limit should be increased from Rs 2,50,000 to Rs 5,00,000,” the chamber’s memorandum to the Finance Ministry stated. Budget 2019-20: FM Nirmala Sitharaman Holds Pre-Budget Meeting With Finance Ministers of All States.
To boost housing demand, 65 per cent of respondents felt the Budget may increase the tax deduction limit for interest on housing loan for self-occupied properties from the present Rs 2 lakh. Also, 51 per cent said the government could carve out deduction for repayment of housing loan principal from the existing overall deduction limit of Rs 1.5 lakh under Section 80C. Income Tax Slabs 2018-19: A Look At How Your Annual Income is Taxed Currently Ahead of Union Budget 2019-20.
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 |
The government is scheduled to present its first full Budget on July 5, for the current financial year. On February 1, then Finance Minister Piyush Goyal had presented the interim Budget and announced a full tax rebate for individuals earning up to Rs 5 lakh annually. It means individuals having a net taxable income upto Rs 5 lacs can claim the tax rebate under 87A and thus effectively pay zero tax. (With agency inputs)
(The above story first appeared on LatestLY on Jun 30, 2019 06:02 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).