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Interim Budget 2019 of Modi Government will reduce your Tax Burden?

Budget 2019 - Modi Government

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Will Interim Budget 2019 reduce your Tax Burden

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Well, the 1st budget of Mr. Modi government was hailed as the sign of ‘acche din’. It gave a bonanza to tax-payers by increasing their basic exemption limit and the tax-deductions under section 80C. Although, the successive budgets have not been so generous with us. Whilst, there were some more deductions that have been offered to tax-payers; Budgets have also levied additional taxes, also, taken away some tax benefits.

When we talk about the 2015 Budget, for instance, it was not so friendly to the super-rich people. The surcharge of 10% on incomes above INR 1 crore was increased from 12% -15%. The succeeding year, a 10% surcharge was introduced for income between INR 50 lakhs and INR 1 crore. Not to miss, the final blow came last year in the form of 10% tax on LTCG from equity investments exceeding INR 1 lakh yearly.

At the same time, the Modi government abolished the wealth tax and strolled the deduction limit from INR 2000 – INR 5000 monthly falling under the section 80GG for those who don’t get House Rent Allowance (HRA).

With only a few hours left for the Interim Budget 2019, the expectations are on the favor of a ‘tax-friendly budget’. Rumors says that Modi government will try their level best to support middle-class tax-payers by offering amazing tax-benefits.

Increasing the basic exemption limit is a bit tricky. Apart from giving benefits to all tax-payers, but for the exchequer, it will lead to a tax loss. The estimation says that every INR 10,000 increase in the basic exemption leads to tax-loss of almost INR 2,000 crore for the exchequer. All we can say is – Good Luck!

Budget 2014

  1. Basic tax exemption limit raised from INR 2 lakhs – INR 2.5 lakhs.
  2. Deduction limit under Section 80C raised from INR 1 lakh – INR 1.5 lakh.
  3. Deduction limit on a home loan raised from INR 1.5 lakh – INR 2 lakhs a year.

Budget 2015

  1. The Additional deduction of INR 50,000 on contribution to the NPS.
  2. Sukanya Samriddhi Scheme made tax-free.
  3. Deduction on health insurance premium increased.
  4. Tax-free transport allowance limit hiked from INR 800 to INR 1,600 every month.
  5. Wealth tax was abolished
  6. Surcharge on individuals with income above INR 1 crore raised from 10% – 12%.

Budget 2016

  1. Deduction for rent payers INR raised from INR 24,000 – INR 60,000.
  2. Tax rebate for taxpayers INR with income below INR 5 lakh raised from INR 2,000 – INR 5,000
  3. Additional exemption of INR 50,000 for new home buyers INR on loans up to
  4. Surcharge on income above INR 1 crore increased from 12% – 15%.

Budget 2017

  1. The Tax rate for income between INR 2.5 lakhs and INR 5 lakhs reduced from 10% – 5%.
  2. The Tax rebate of INR 12,500 offered to all tax-payers INR.
  3. 10% surcharge introduced for incomes between INR 50 lakhs – INR 1 crore.

Budget 2018

  1. The Standard deduction of INR 40,000 re-introduced for salaried individuals.
  2. Transport and medical allowances to be taxed.
  3. Increase in Cess from 3% – 4% for tax-payers INR
  4. 10% tax on LTCG from equities exceeding INR 1 lakh.

Budget 2019

Looking forward to it – Modi Government…. The Budget Session 2019 awaits!

Credits for data: economic times

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