5 Things in Budget 2019 Middle-Class people can Expect
The trending question nowadays:
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When will budget 2019 be announced?
No more wait, the budget is just around the corner, and as always, the budget 2019 expectations of the people are quite high. Since, the elections for Union Government are to be held this year, therefore, it’s going to be an Interim Budget.
Not to miss, middle-class being the increasing economy sector has pinned high hope on the budget 2019. The expectations state that there is a possibility that the government will announce several tax-breaks that will help them to save more money by minimizing their tax liabilities. *fingers-crossed*.
Budget 2019 Expectation of the Middle-Class People – A Word
If we turn the tables, budget 2018 popped-up many surprises for salaried people; the taxation rate on the income slab between – 2.5 Lakhs- 5 Lakhs was condensed from 10%-5%, and transport allowance and reimbursement were replaced with a nominal deduction of 40,000 INR.
Let’s look at some of the points of the budget 2019 and if middle-class people stand any gain from it. Read on:
- Revised Taxation Slabs: The left eye has been blinking since days, may be this can the good sign that government will increase the basic exemption limit of income-tax in the 2019 budget. Thus, helping the tax-payers save enough money on their (taxation) liabilities.
Individuals who are earning more than INR 20 Lakhs will come under 30% taxation bracket, which currently applies to all those individuals who are earning INR 10 Lakhs or more.
- Increase in Section 80C Deductions: Section 80C is one of the best options of the middle-class people to save on tax liabilities and create a retirement corpus. The current limit is INR 1.50 Lakhs for deductions, but with the rise in the inflation, this will prove to be inadequate. So, the chances are that the deduction limit under 80c can be increased to INR 2 Lakhs.
- LTCG Tax on Listed Securities: In 2018 budget, the government levied LTCG tax on profit(s) from equities, only if the amount exceeds INR 1 Lakhs. This can be a major cheer for the stock market and the people who have invested in mutual funds. The expectations state that there will be more clarification on this aspect and switching within a scheme will be kept out of the range of LTCG.
- HRA Benefits Extension: At present, the HRA benefits available for salaried people in metro cities – Mumbai, Delhi, Kolkata, and Chennai are 50% of the Basic Salary, and for non-metro cities, the limit is 40%. Those who are living in Tier-2 cities – Gurgaon, Hyderabad, Pune, Bengaluru, etc. are expected to see these cities come under the category of metro cities. Like said, this will help an individual to take advantage of the HRA exemption limit.
- Relief on Housing Loan: At present, purchasing a home is not possible without a home loan, Right? To provide relief on the same, the government might offer tax-relief up-to INR 2 Lakhs against interest component of a home loan. However, this turns out to be insufficient for middle-class people and they will be expecting the limit to INR 2.5 Lakhs. Thus, saving a significant amount against their taxation.
On That Note: Even the up-coming budget is an Interim Budget, but there are certain expectations that can help in boosting the savings of individuals on their taxation liabilities. What are your thoughts regarding the same?