Interim Budget 2019 and all its predictions (Part 1)

Budget 2019 one of the most talked about fuzz in the country presently has lots in store to predict. In todays blog, we will try to enlist some of the key predictions of a salaried individual from the last and interim budget of Modi Government. One of the major tax relief which people are looking forward to is in terms of increase in Basic Exemption Limits. Presently in India, we have 3 tier basic exemption limit, which is

Age of Individual (Both Male & Female)

Basic Exemption Limit*

Upto 60 Years 2,50,000
60 Years & Above but upto 80 years 3,00,000
80 Years & Above 5,00,000

*Basic Exemption Limit is the amount till which your gross income is not taxable by the Income Tax Department. As per the predictions, the above taxable limits for individual below 60 years in age shall increase up to Rs 5,00,000. Even in the case, the same is not proposed by the government as it is, the masses expect at least a rise up to Rs 3,50,000 from the existing Basic Exemption Limit slab of Rs 2,50,000 for those falling in the minimum criteria. This will entitle the maximum and direct benefit to the middle-class citizens of India which constitutes the majority of the population in the country. The Basic Exemption Limit for those falling in the second category is expected to be raised till Rs 6,00,000. The current benefit provided to them is restricted up to Rs 3,00,000 income annually. This involves the citizens who are at the age of 60 years or more in the previous year but the slab is only applicable to those upto 80 Years of age on the higher side. The super senior citizens can expect an increase in the basic exemption slab applicable on them from present Rs 5,00,000 to Rs 8,00,000. The expectation of masses for an increase in the basic taxable limit form Interim Budget 2019 can be summarized as under

Age of Individual (Both Male & Female)

Basic Exemption Limit (Expected)

Upto 60 Years 5,00,000
60 Years & Above but upto 80 years 6,00,000
80 Years & Above 8,00,000

The NDA has been a path breaker in all its previous budgets with making no major announcements to the Income Tax Slabs or 80C limits etc. So, it would be quite interesting for all of us to wait and watch whether the government continues with its 5-year old saga or makes the route to big tax reliefs to the public at large.

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