Tax

Income Tax Benefits Likely to Be Announced in Union Budget 2019-20

The Union Budget is due to be announced on July 05, 2019 by the Finance Minister Nirmala Sitharaman and taxpayers are already speculating on the various income tax benefits that may be introduced in the Budget. Though the Interim Budget introduced some reforms in the tax front earlier in February, expectations among the common men have been flying high.

Here are the income tax benefits that may be announced by the Finance Minister in the Modi Government’s first Budget post-re-election:

Increase in the tax benefit limit under Section 80C

As per Section 80C of the Income Tax Act, taxpayers, especially the salaried front, are eligible for tax benefits up to Rs.1.50 lakh from their gross income. Though the 80C limit has remained unaltered since the last Union Budget, taxpayers anticipate the limit to be increased up to Rs.2 lakh in the upcoming Budget. This will allow salaried individuals to direct a higher portion of their savings towards investments. An increase in the tax benefits limit will also allow home loan borrowers to claim higher tax deductions on interest payments under Section 80C.

Increase in tax exemption limit on interest on savings bank accounts and deposits

At present, the tax exemption limit on interest earned through savings bank accounts and deposits for senior citizens is set at Rs.50,000. However, the interest earnings not liable for taxation in case of others has been limited to Rs.10,000. Hence, an announcement regarding the same where the limit for other individuals has been increased could be expected.

Also Read: Documents Required for Filing an Income Tax Return

Revision of the Income Tax Slab

The government had earlier introduced a full tax rebate to taxpayers with income up to Rs.5 lakh in the Interim Budget announced in February. This has led to the speculation that taxpayers from the other slabs will also be benefited with tax rebates by revising the tax implications on various income brackets.

Termination of Securities Transaction Tax (STT)

Investors have also been keeping their hopes high over speculations of the government’s decision to abolish the securities transaction tax (STT) on securities, mutual funds, and stocks ahead of the Union Budget announcement.

Taxpayers anxiously wait for the Union Budget announcement by Nirmala Sitharaman due on Friday. An improvement in income tax benefits could increase the quantum of disposable savings for taxpayers to eventually direct them to investments, eventually boosting the economic growth of the country.

Share

Recent Posts

Mutual Funds: SIP Inflows Breach Rs 19,000-Crore Mark for the First Time in February ’24

The systematic investment plan (SIP) contribution in February 2024 has crossed a new milestone. The monthly contribution tipped at Rs…

8 months ago

Income-Tax Return: A Brief Note on Annual Information Statement (AIS)

The Income-Tax (I-T) Department has directed taxpayers to access the Annual Information Statement (AIS) via the e-filing official portal and…

8 months ago

Mutual Funds: All About SIP and Market Fluctuations

Considering the vagaries of the stock market, investors often ponder over reevaluating their strategies. Whether to continue to remain invested…

8 months ago

Income-Tax Saving Through Strategic Life Insurance Planning

Financial planning is beyond just investing wisely to save on taxes; it's also related to protecting oneself and one's loved…

8 months ago

Income-Tax Return: Here’s a Note on Tax-Saving Avenues

A salaried individual earning up to Rs 5-15 lakh as net salary on an annual basis must first take stock…

8 months ago

A Quick Take on Equity-Linked Savings Scheme

Equity-linked savings schemes (ELSS), also referred to as tax-saving schemes, are equity funds that invest a significant portion of their…

8 months ago