It is expected that Finance Minister Nirmala Sitharaman may announce a change in the income tax slab in her budget speech.
New Delhi| Finance Minister Nirmala Sitharaman will deliver a budget speech at 11 am in the Lok Sabha. She will be the first woman finance minister to present the budget for the second time in a row. Prior to this, there will be a cabinet meeting in which the budget will be approved. Earlier, Indira Gandhi once presented the budget in February 1970. It is expected that Nirmala Sitharaman can announce a change in the income tax slab in her budget speech. According to a pre-budget survey by tax consultancy firm KPMG, 82% of the 219 companies in 18 sectors think that the deduction limit of Rs 1.5 lakh can be increased under 80C this time. The budget may also announce a national logistics policy.
Income tax
Current rate: According to the announcement of the interim budget last year, up to Rs 5 lakh is taxable income tax-free. The rebate is available through a rebate, but the tax slab starts at Rs 2.5 lakh.
Also Read: Before Budget, Nirmala Sitharaman to present Economic Survey in Parliament
Demand: Income tax exemption limit should be increased from the current Rs 2.5 lakh to Rs 5 lakh. That is, income up to this limit is completely out of the tax realm. They do not even need to file returns. There is also a demand to reduce the tax on income from Rs 5 lakh to Rs 10 lakh from 20% to 10%. If this is the case, taxable incomes of up to 10 lakhs will save 46,800 rupees annually.
National Logistics Policy
The government may announce a national logistics policy in the budget to facilitate commercial transportation in the country. According to the Sources, logistics division of the Ministry of Commerce has worked on the policy. Its purpose is to reduce freight costs for traders. A central portal can be proposed for this so that companies can find solutions related to logistics.
Expect relief on long-term capital gains tax
Capital gains tax can be eliminated on a property sale. Long-term capital gains tax time for stock investors can be extended from 1 year to 2 years. Investors sell after holding shares for a year, so they have to pay a 10% long term capital gains tax. Dividend Distribution Tax (DDT) liability rule may apply to shareholders rather than companies.
If the capital gains tax ends on property sales, it will be good for the real estate sector. Now the rule is that if the proceeds from the sale of the property are not invested in the property again within 3 years, then the profit will have to be paid 30% capital gains tax. On the other hand, if a person sells the property within 24 months, he has to pay short term capital gains tax. After 24 months, 20% Long Term Capital Gains are taxed. You can buy a maximum of two houses from the capital gains from the sale of the house. But, to claim tax exemption, the capital gain should not be more than Rs 2 crore. This discount can only be taken once in a lifetime.
As an independent media platform, we do not take advertisements from governments and corporate houses. It is you, our readers, who have supported us on our journey to do honest and unbiased journalism. Please contribute, so that we can continue to do the same in future.
