The Budget Day is round the corner and Interim Finance Minister Piyush Goyal will soon unveil the interim budget for 2019-20 fiscal on February 1, 2019. Expectations are high as it is the last budget to be presented by the NDA-led central government ahead of the 2019 Lok Sabha elections. Several predictions have been made so far but the one that will make it the budget for middle-class are the reports revolving around some tax reforms that will give taxpayers more money to spend and ease the burden by offering some major exemptions. Among all the key tax-related expectations, one that will woo the voters for BJP government in 2019 polls is raising the Income Tax exemption limit to Rs 5 lakh from current Rs 2.5 lakh. There are also reports that suggest that the income tax exemption slab could be raised to even Rs 8 lakh per annum.
The decision will bring major relief to the middle class since 2014 when the government had made some changes with the income tax exemption limit which was raised to Rs 2.5 lakh from the already existing Rs 2 lakh. The other significant change to the Income Tax slab came with the Budget 2017 when the lowest rate of tax was reduced from 10% to 5% for individuals. The general category of taxpayers will hail the BJP government if the income exemption limit will be increased to at least Rs 3 lakh.
According to reports, of the 5.7 crore people who e-filed their tax returns in 2018, around 2.7 crore taxpayers showed their income up to Rs 3.5 lakh and roughly 1.5 crores were in the category of over Rs 3.5 lakh income category. Thus the number highlights the possibility of a significant number of Indian to be benefitted paving way for the BJP in 2019 polls.