Budget 2019 - Income Tax expext on July 5th...

Budget 2019 : Income tax changes you can expect on 

July 5th …

Several economists said the government may introduce some tax sops to boost demand and speedup economic growth .

High Lights :-

Income tax deduction under section 80 (c) of income tax act could be increased …
Tax deductions towards health care and home loans also likely to increase...
There is no clarity on whether the government will increase income tax exemption limit...

Our Finance minister Nirmala sitharaman gets ready to announce her maiden budget on July 5th,expextations among Indian citizens are already sky high...

Most of the demands that have been proposed in the run up to July 5th pertain to lower taxation , especially those belonging to the middle income group...


Points …

Income tax exemption limit 

Since a full tax rebate upto Rs.5 lakh was introduced under section 87A in the interim budget, It is unlikely that there will any other alteration in the exemption . But citizens and many industry bodies want the government to increase the tax exemption threshold from the existing Rs2.5 lakh to at least Rs.3 Lakh...


Higher Income Tax deduction 

The income tax deduction allowed under section 80 (c) , currently at Rs.1.5 lakh , could be raised to Rs.2 Lakh or above...

This will allow people to save more tax on investments made under section 80 (c) of the Income Tax act . Investments towards PPF,EPF,NSC, Fixed deposits and NPS qualify for deduction under section 80 (c)…


More Tax benefits towards healthcare 

There are high chances that the government will increase deduction under tax saving instruments available in health care . Industry bodies have already asked the government to increase tax saving under section 80 (D) of the income Tax act...

The limit could be increased from the current Rs.25,000 , applicable to people aged below 60 years,
under section 80 (D) . The concession could also be raised under section 80 (D) for people above the age of 60 years.The current limit of exemption for people above 60 years is Rs.50,000 …


Higher Deduction on Home Loans

Since the real estate sector has been affected negatively due to a demand slowdown , the government could offer more tax benefits to buyers and provide a much needed boost to the sector...

According to the latest details , People can claim a maximum deduction upto Rs.2 Lakh under section 24 B of the Income Tax Act …

Tax Free Bonds may witness a come back

One of the key goals of the government in the budget will be to boost infrastructure projects as it holds key to boosting, job growth and pushing up demand.

In such a scenario , it would not be a surprise if tax-free bonds witness a comeback...

The instrument will help the government raise capital through entities for infrastructure projects. Such bonds are called tax free as the interest earned on them is not taxable...

While these bonds have a long period of maturity ranging from 10 years or more they are safe than many other options available in the market …


Thanks & Love u all from the heart ...Yours MG...