What is in store for a common man in 2019 budget? Will the majority benefit out of it? All these and more apprehensions arise as budget 2019 is ticking closer.
Speculations are around the corner that there is something in store for the budget 2019. Union Finance Minister Piyush goyal who has made certain changes in the budget for five years will bring about certain positive amendments this year too.
Most of the industrialists and citizens of India are concerned about the tax structure and the buzz is that changes will be made in this year.
Before we talk about the changes in 2019 budget let’s have a detour of the happenings of budget from 2014-2018
- In the year 2014; the income tax exemption limit was raised from 2 lakh to 2.5 lakh, deduction for loan interest for self occupied was raised from 1.5 lakh to 2 lakh, increase in the investment limit under section 80C.
- In the year 2015 the wealth tax was eradicated and surcharge on income above 1 crore was raised.
- The 2016 budget announced increase in surcharge from 12% to 15%, tax rebate of Rs.5000 for individuals with income upto 5 lakh and an additional deduction of Rs.50000 for first time home loan borrowers.
- In the year 2017 income tax rates were reduced from 10% to 5% for an income of 2.5 lakh to 5 lakh, 10% surcharge on income between 50 lakh to 1 crore, penalty upto Rs. 10000 on non filing of income tax returns and more.
- In 2018 there was a hike in cess from 3% to 4%, introducing standard deduction of Rs.40000 for salaried individuals and certain benefits were added to senior citizens.
With the elections coming around the corner, there will be a few changes for the good expected from 2019 Budget. As per few popular news journals, there has been few changes implemented in the past budget, this year also we can expect few changes in the budget.
Let us look into the probable forecasting of Budget 2019 the most awaited one. As the clock is ticking closer for the budget to be announced and also the elections drawing closer there is a hope for better tax sops for individuals as well as companies.
Here are a few expected changes:
- A possible increase in the income tax exemption for taxpayers from 2.5 lakh to 5 lakh
- Reservation for the economically weaker section. The term weaker section include families whose household annual income is lower than Rs. 8 lakh.
- A strong buzz that the maximum deduction limit under section 80c to be increased from 1.5 lakh to 2 lakh. This implementation will pave way for better tax savings in the form of other investments.
- On business front there is a possibility to lower the personal income slabs from 30% to 25%.
- Also the Federation of Indian Chambers of Commerce and Industry (FICCI) wants a revision in the tax slabs for individual tax payers which presently is at 30% for income beyond 20 lakh.
One of the major outbursts is the standard deduction rate which is currently at Rs. 40000 for all salaried individuals. Since the transport and medical reimbursement benefits have been removed there is a demand to increase the standard deduction to R. 75000.
There might be a possibility in increasing the Government’s contribution to the National Pension Scheme (NPS) from 10 % to 14% and also tax exemptions for withdrawal upto 60%.
With a positive note and considering the revisions made for the 2019 there is a hope that the earning and middle class would benefit from this. It looks like that the possible actions taken in the budget 2019 will not only benefit the industry class, but also the common man at large.
Let us keep our fingers crossed and wait patiently as the budget will be announced shortly.