Budget 2019: Middle class may get benefit with higher tax deductions
New Delhi : Nirmala Sitharaman will be presenting the first union budget of BJP-led NDA's second term on Friday and going by media reports; it looks like middle-class taxpayer will get a lot to cheer about by the end of the day.
According to media reports, in the Budget 2019-20 it is expected that the basic tax exemption limit of an individual may be increased to Rs 3 lakh from current 2.50 lakhs.
In the interim budget, the government had proposed a rebate on all payable taxes if an individual’s taxable income is up to Rs 5 lakh per annum.
Moreover, individuals would also have increased avenue to save tax as deduction from taxable income available under section 80 C of the Income Tax Act may be raised to Rs 2 lakh from the present limit of Rs 1.5 lakh. The Rs 50,000 additional annual saving window for investment made in National Pension Scheme (NPS) will, however, continue increasing the total savings under Section 80 C to Rs 2.5 lakhs.
Buying a dream home will also become easy as the tax deduction limit on interest on home loans may be increased to Rs 2.5 lakh a year from the present Rs 2 lakh limit.
But this enhanced benefit will come with withdrawal of deduction for interest on second house that was allowed earlier.