Centre May Hike Income Tax Exemption Limit From Rs 2 lakh To Rs 5 lakh
The Narendra Modi led-BJP government is considering hike in the income tax slab limit for exemption from Rs 2 lakh to Rs 5 lakh,In what could come as a major relief for the tax-payers, the Centre is likely to increase the Income Tax slab limit for exemption from Rs.2 lakh to Rs.5 lakh. This may be a big relief to the common man.If implemented, this could be a major and a historic tax reform which would be welcomed by the people with open arms.The health insurance premium is likely to be raised by Rs.5,000.
Sources further said that the government is also considering raising the tax exemption limit on home loans and health insurance premium.The moving of the tax bracket from Rs 2 lakhs to Rs 5 lakhs would mean that there would be no tax payable on income up to Rs 5 lakhs.The hike in the exemption limit,would provide much needed relief to the salary earners who are reeling under the impact of high inflation.
Today’s Business standard confirms this hypothesis, and says only a marginal increase in tax exemption limits may happen. The Budget for 2014-15 will be presented by Finance Minister Arun Jaitley in the Lok Sabha on July 10.
The common man may be left disappointed when Finance Minister Arun Jaitley turns to part-B of his Budget speech on July 10.Because taxpayers expecting the income tax exemption limit will be raised to Rs 5 lakh.Tax experts say The government should give some benefit to people.The loss to the exchequer will be Rs 30,000 crore, if the tax exemption limit is increased to Rs 3 lakh.