According to information from the Finance Ministry, the Government is giving serious thoughts about raising the income tax exemption slab from the current Rs. 2 lakhs to Rs. 5 lakhs. The information adds that Modi is planning to make the raising of income tax exemption slab from Rs. 2 lakhs to Rs. 5 lakhs as one of the achievements of his Government’s tenure. The Finance Ministry has, it seems, sought a report regarding this from the Income Tax department. A number of other financial incentives are also likely to be announced by the Modi Government.
The Government has also planned to raise the tax exemption on housing loans. According to sources from the Finance Ministry, there are also plans to increase the tax exemption on medical insurance premium.
The reports add that Modi is trying to impress as many people as possible with the very first budget that his government is going to present. The demand for raising income tax exemption level to Rs. 5 lakhs has been a long-standing one. Economists and experts suggest that the slab be fixed in accordance to the current price and inflation levels.
The long-standing demand of the middle and salaried classes, to raise the income tax exemption slab to Rs. 5 lakhs from 2 lakhs, is being seriously considered by the government led by Prime Minister Modi.
Based on sources from New Delhi, the first budget of the newly formed Government is likely to be presented on the 11th of July. These sources say that the Finance Ministry has sought a report from the Income tax department. The sources also add that the Government is also planning to increase exemptions granted to housing loans and medical insurance premium. If all these suggestions get implemented, then it would come as a huge relief to the salaried and middle-class folks. Previously, Finance Minister Arun Jaitley was considering raising the income tax exemption slab to Rs. 3 lakhs.