Budget 2019 likely to appease farmers, middle class; Increase in Income tax exemption limit expected

The reports suggest that the government might alter the income tax exemption limit from the current Rs 2.5 lakh to Rs 5 lakh. If this announcement is made, then a lot of taxpayers would be affected by the change; especially the middle class ones.

Budget2019: Image for representational purpose/ PTI

New Delhi: Interim Finance Minister Piyush Goyal is set to present Narendra Modi led-Bharatiya Janta Party government’s interim budget for 2019 on Friday. The government is presenting interim budget as the country goes to Lok Sabha polls after 3 months. A full-fledged budget will be presented thereafter by the new government post elections. Considering the pressure of upcoming elections on the government, the centre is likely to make major announcements keeping the middle class and the peasants in mind. Farmer relief: As per reports, the government is likely to announce farmer relief package or wave off farmer loan; something the Indian farmers have been demanding for long; and became one of the reasons Bharatiya Janta Party faced defeat in the recent Assembly elections in three states. As per reports, the government is also likely to make announcements for the middle class, the section which was allegedly “neglected” in the previous budget. This budget is likely to favour the middle class as government has been eyeing the middle class votes. Income tax exemption limit: The reports suggest that the government might alter the income tax exemption limit from the current Rs 2.5 lakh to Rs 5 lakh. If this announcement is made, then a lot of taxpayers would be affected by the change; especially the middle class ones. Currently, people earning upto Rs 2.5 lakh are exempted from paying income tax; whereas those earning between Rs 2.5 lakh and Rs 5lakh are required to pay 5% tax along with cess.