InvestorQ : What can salaried individuals expect from budget 2020?
seema Upadhyaya made post

What can salaried individuals expect from budget 2020?

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Anusha Savla answered.
8 months ago

Well, there can be a piece of good news for the salaried individuals in the upcoming budget, as the center is planning to extend further incentives to salaried taxpayers. The finance ministry is considering to allow tax exemptions of up to Rs 2.5 lakhs for savings under section 80. The center may also carve out another separate segment under section 80C of the Income Tax Act to give exemptions up to Rs 50,000 for National Savings Certificate (NSC).

The center is also considering to allow a maximum investment limit of Rs. 2.5 lakh for Public Provident Fund (PPF) investors. Presently, there is an exemption of Rs 1.5 lakh under Section 80C of the Act, which includes investments made to the PPF account, along with NSC. Tax officials believe that this step will have the advantage of garnering personal savings and can be crucial at the time when India’s savings are going down.

So, there are chances that there will be direct cuts in the personal tax rate to make this budget beneficial for the individuals. Even though these amendments or cuts could reduce the tax collections for the government, it help will help the economy to revive.