INSUBCONTINENT EXCLUSIVE:
The government will present Interim Budget 2019 on February 1
Being last budget by government before general elections due by May, expectations are high for relaxation in income tax rules
At a time when government needs to balance growth with revenue collections, easing of income tax rules may be a challenging task, say
The finance minister had in last budget kept income tax slabs unchanged while announcing some key changes, such as introduction of a
standard deduction of Rs 40,000 for salaried individuals.Tax experts say some changes are likely such as measures to address farm distress
Here's what they say on upcoming Interim Budget:Sandip Sabharwal, investment adviser:"Given current mindset of government it is highly
probable that there will be significant relaxations given to small taxpayer in this budget
Only around 10 per cent of total income tax collection comes from people who report earnings of Rs 10 lakh or below.""The key challenge for
government in context of budget 2019 is to balance interests of growth with that of revenue at a time of a slow global economy
Low farm prices have led to distress on rural side
With Income tax relaxations there will be need to meet revenue targets which will be difficult."Ashok Shah, partner, N.A Shah Associates
LLP:"Government has not changed slab rates for individual taxation in last budget
In current year, there has been substantial increase in direct tax collections
This reinforces belief that moderate tax rates lead to increased compliance
Hence common man can expect relief in tax rates for individuals.""Last year, Government introduced standard deduction for salaried employee
and at same time withdrew various exemptions
This change was done to simplify tax administration
On an overall basis, there was no substantial relief to salaried employees
Salaried employees have to bear burden of higher taxes as they do not have any avenues of tax planning.""Hence some relief can be expected
by way of increase in quantum of standard deduction."
