Modi Govt to Raise Income Tax Exemptions in Budget Presentation

Prime Minister Narendra Modi, who vouched for no-tax regime during his electioneering but relented later, is now pondering soaps amounting to tax exemption of up to Rs.5 lakhs for all citizens.

Only senior citizens are allowed such exemption under the current tax regime.

Now that the new government has come to power, first move by the Narendra Modi government would be to please the huge middle class which rallied behind the BJP and gave it a thumping majority in parliament to go for any structural changes in the country’s economy.

In line with this, reports say the government may increase the income tax slab limit for exemption from Rs 2 lakh at present to Rs 5 lakh.

It is learnt that the finance ministry has asked the the Central Board of Direct Taxes ( CBDT) to submit a report on new slabs for exemption.

The government has also asked it to review extension of tax limit on home loans and health insurance premiums to bring in more dynamism in the economy.

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