Budget 2019: Higher Tax Exemption under Section 80C, Interest on Home Loan & for Pensioners?

Budget 2019: Budget 2018 brought about the revival of Standard Deduction of Rs.40,000/- in lieu of medical and transport allowance.

Budget 2019: With Interim Budget 2019 just 3 weeks away, the Finance Ministry may be looking at ways to rejig the Income Tax benefits to its most honest set of taxpayers – the Middle Class. (PTI)

Budget 2019: With Interim Budget 2019 just 3 weeks away, the Finance Ministry may be looking at ways to rejig the Income Tax benefits to its most honest set of taxpayers – the Middle Class. Since coming to power, the Narendra Modi led BJP government has time and again doled out benefits for the salaried class, pensioners as well as senior citizens. In his maiden budget after assuming office in July 2014, FM Arun Jaitley raised the Income Tax exemption limit to Rs.2.5 lac for individuals and Rs.3 lac for senior citizens; apart from raising the Tax Exemption under Section 80C from Rs.1 lac to Rs.1.5 lac. Investment limit in PPF was raised to Rs.1.5 lac from Rs.1 lac while deduction limit on interest on loan for self-occupied house was raised to Rs.2 lac from Rs.1.5 lac earlier. FM revisited the benefits on Income Tax for salaried class in Budget 2017 when he reduced income tax rate to 5% from 10% earlier for income between Rs.2.5 lacs to 5 lacs. Budget 2018 brought about the revival of Standard Deduction of Rs.40,000/- in lieu of medical and transport allowance. With eyes on General Elections 2019, the Finance Ministry may hike tax exemption on savings limit for financial instruments that come under Section 80C while income tax exemption to pensioners may be well on the cards. Giving a boost to Home buyers, speculations are riff that exemption on interest paid on Home Loans may be increased further. The NDA government is playing its last leg well to woo voters so it can be brought back to power again in 2019. With centre clearing 10% reservation for Economically Weaker Section (EWS) regardless of caste, creed or religion; measures on tax benefits for the middle class will work immensely in favour of the Modi government.