Budget 2019: Increase Income Tax Exemption Limit to Rs 8 Lakh Per Annum, Says Shiv Sena Citing 10% EWS Quota Eligibility Criteria

Mumbai, January 28: With Lok Sabha elections just a couple of months away, BJP-led Union government’s long-time ally – Shiv Sena – has sought that tax reforms for people earning less than Rs 8 lakh a year and should be exempted in the interim Budget. The demand comes weeks after Union government passed the 10 percent EWS reservation in jobs and education sector, which has a clause that the annual income of family should not increase Rs 8 lakhs.

The demands were pressed in the party meeting in Mumbai which was chaired by Sena chief Uddhav Thackeray, informed senior Shiv Sena parliamentarian Sanjay Raut. Though he did not mention what Sena thinks of the upper slabs for the income tax return, but made it clear that if EWS has to be implemented throughout the country then the tax slabs needs modification, especially for the family earning less than Rs 8 lakh annually. Budget 2019 Expectations: Hike In Tax Exemption Limit, Sops For Farmers; Here's What's On Cards For Interim Budget on February 1. 

According to the current tax slab of 2018-19, a person earning upto Rs 2.5 lakhs/pa is exempted from paying income taxes. A person earning between Rs 2,50,000 – Rs 5,00,000/pa has to pay 10 percent taxes, between Rs 5,00,000 – 10,00,00/pa the percentage rises by 10 percent more. And for the people earning more than Rs 10,00,000, they have to pay 30 percent tax.

The Sena while communicating its message did not even stated once on the coalition with BJP for the upcoming Lok Sabha elections, but made it clear that they are the big brothers in Maharashtra. Raut said, “We are the big brother in Maharashtra, we were the big brother and will stay the big brother.” Interim Budget 2019: Tax Exemption Limit to be Raised Upto Rs 5 Lakh, Says Report. 

Explaining the reason for tax reforms, Raut said, “We discussed Rafale, issue of drought in Maharashtra.  Uddhav Thackeray Ji said on the 10% EWS quota to General Category that people with annual income of 8 lakh must be exempted from paying Income Tax. Since you have labelled them poor, they must be exempted.”

Earlier the BJP had said that their alliance in the state and country-wise is intact and both the parties will contest elections combinedly. However, till now there has been no discussion over the number of seats both the parties would contest in the upcoming elections.

(The above story first appeared on LatestLY on Jan 28, 2019 03:25 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).