Budget 2019 predictions India: Modi govt mulls changes in income tax rates, relief on housing loan interest rates, savings limit

In Budget 2018 speech, FM announced a standard deduction of Rs 40,000 for the salaried class while doing away with the medical and transport allowances.

Budget 2019: Salaried, middle class and pensioners may well get big income tax boost from the Narendra Modi government in the interim Budget 2019. Finance Minister Arun Jaitley will table the BJP-led National Democratic Alliance (NDA) government’s final budget before the Lok Sabha elections 2019 in less than three-weeks time. Aiming to woo the middle-class voters, the central government is considering options to provide income tax relief to the aam aadmi, according to ET Now.

The preparations for the Budget 2019 are in full swing and the central government is fine-tuning its strategies for the annual behemothian task. To satisfy the middle class and salaried class, a host of proposals are being discussed between Finance Minister Arun Jaitley and the tax department.

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The proposals such as hiking savings limits and increasing tax concessions for middle class and pensioners are being considered, the channel reported. The central government may lower the interest rates on housing loans. The discussions are also on over likely changes in basic customs duties, the report says.

Budget 2019 Income Tax calculator

Traditionally, the outgoing government does not announce big decisions during an interim budget. However, if the BJP government at the Centre does take bold decisions on the aforementioned proposals, it would bound to have a political bearing in the upcoming general elections.

In Budget 2018 speech, FM announced a standard deduction of Rs 40,000 for the salaried class while doing away with the medical and transport allowances.

In the Union Budget 2018, the government announced that individuals aged less than 60 years with an income up to Rs 2,50,000 per annum would not require to pay Income Tax. Individuals aged 60 years or more than that with an income up to 3,00,000 got the exemption from paying income tax.