There is a talk in the power corridors that Arun Jaitley the Finance Minister who would be presenting the Interim Budget of this Government on February first would raise the Income-tax limit to 5 lakhs. Up to five lakhs, there will be no tax.
Now the limit is 2.5 lakhs. After that 40000 is allowed as standard deduction.
Then after that up to five lakh income, 5 per cent tax is charged. Before last year up to 5 lakh income the tax was 10 per cent. It was reduced to 5 per cent in 2017. Now the latest is that up to 5 lakh income there would no income tax this will be implemented from 2019. After five lakhs the slabs of tax will be fixed it is learnt.
Like the decision taken on 10 per cent reservations for the forward castes, the Modi Government is planning to lift the limit of IT from Rs 2.5 lakh to 5 lakhs for the individuals and the salaried class it is learnt.
This is expected to fetch a lot of votes to the NDA Government in the 2019 elections. Along with this some other sops on housing and also construction sectors are also expected. There is no doubt that the Modi Government has no other option but to announce an election budget if it has to win the 2019 election.