New Year starts with the excitement, expectations and resolutions, expectations comes in the form of earnings, spending, taxes or benefits.
These all factors have the direct correlation with the budget present by the government. Budget is being the most important event for every individual resides in this country.
Everyone starts discussing regarding the upcoming budget a month before with their colleagues, friends or family. Everyone have its own viewpoint related to it. Will this budget benefits us or we have to loosen the pocket more.?
We are two more days away from the 2018 Union budget will going to present. This will be the last regular Budget under the Narendra Modi government before general elections and tax payers have more expectation this time.
On 1st Feb, it will be going to present to the nation and We come across with the few surprises that we can assume will be included in the upcoming budget:
Raise deduction under Section 80C:
At present, deduction of a maximum Rs 1.5 lakh is allowed to all individual taxpayers for investing in various tax saving schemes, such as PPF,EPF, life insurance schemes, National Savings Certificates, ELSS, etc. Speculations are coming that this limit will going to increase by 50,000. So the new 80C deduction we can see upto the 2 lakhs.
Higher tax exception limit:
People in India asking for a hike in the income tax exemption limit from Rs 2.5 lakh per annum to Rs 3 lakh since the the Budget 2017. So there will be chances to include this as a benefit in the upcoming tax system.
New tax slabs and rates:
Under existing slabs, 20 per cent tax is levied on annual income of Rs 5-10 lakh while 30 per cent tax rate is applicable for personal yearly earning above 10 lakh.
If a new tax slab of Rs 10-20 lakh is introduced at a tax rate of 20 per cent – and the Rs 5-10 lakh bracket is taxed at 10 per cent instead of the current 20 per cent.
Long-term Capital gains are taxable:
Rumors are prevailing that investor invests in the long term equity instruments have to pay taxes as per the short term gain. So, it helps government to generates more revenue. The long term taxes can be equal to 15% as of today for the short term gain or it can be less than that.
These are some points that can be raised in the Union Budget 2018, so lets wait for the curtain of the show called budget 2018 go up on 1st feb 2018.