Kochi: Tax payers are hoping that when Finance minister Arun Jaitley announces his second budget of the Modi government on the 29th, it would offer them many benefits. However, there are also doubts on the extent of sops that could be offered by the minister considering the economic problems that the nation is facing.
The recommendations of the seventh pay commission for about one crore of central government employees and pensioners would put a burden of Rs 1,40,000 crores on the government. The 'one rank, one pension' burden is also significant. The government would also have to find money for basic infrastructure development and large projects. While capital-raising measures are not finding any success, the government is having to put more stress on capital raising. However, hopes of the taxpayers are high and some of them are:
An increase in the IT exemption slab to Rs 300,000
Linking exemption with inflation
Increase in exemptions under 80 C to Rs 200,000. The current limit is Rs 150,000. The limit has not been modified since 2014-2015.
The range of savings products that could be considered for exemption under 80C could be increased and some products could be removed from the list.
Non realistic exemption limits could be increased to realistic levels.
Short-term capital gains tax on shares and mutual funds could be re-structured.
Changes to national pension scheme in terms of taxes and benefits.
Analysts feel that the government would go ahead and raise IT exemption limits.