Budget 2020: Time for big income tax relief? FM Sitharaman may reduce total tax outgo by 10% – details

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New Delhi | Updated: January 7, 2020 3:33:12 PM

Budget 2020 expectations: In a layman's term, the union government may tweak tax structure in a way that if tax outgo for an individual is Rs 1 lakh per annum, then the assessee may witness an effective reduction in his tax outgo by around Rs 10,000.

budget 2020 expectations, budget 2020 income tax, budget 2020 india, budget 2020 21, budget 2020 news, budget 2020 suggestions, budget 2020 india income tax, budget 2020 21 india expectationsBudget 2020 suggestions: Apart from the most anticipated Income Tax relief, Budget 2020 may herald a good news for new home buyers.

Budget 2020 India Income Tax Expectations: Finance Minister Nirmala Sitharaman is likely to present a big gift on behalf of the Modi government to the middle class and home buyers in Union Budget 2020. The Finance Ministry is likely to tweak the existing the Income Tax structure and provide a few benefits for new home buyers in the upcoming Union Budget 2020, two central government officials were quoted as saying by IE. The income tax benefits may entail a 10% reduction in a middle-class taxpayer’s tax outgo! India Budget 2020 is likely to be presented on February 1 by FM Sitharaman.

Big Income Tax relief in Budget 2020?

Pre-budget 2020 meetings are being held. Officials of the Modi government, Finance Ministry led by FM Sitharaman have been discussing ways to boost economic growth. With a lot of talks about the present state of the Indian economy, the Modi government could reduce the tax burden on the middle class in order to boost consumption, as per the report.

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A Union Finance Ministry official has said that a number of suggestions and proposals are being looked into. One such proposal is to keep the income tax structure simple by removing all surcharges on the middle class. The Modi government is considering providing Income Tax relief either by adjusting tax slabs or removing surcharges. In layman’s term, the Union government may tweak tax structure in a way that if teh income tax outgo for an individual is Rs 1 lakh per annum, then the assessee may see an effective reduction in his tax outgo by around Rs 10,000.

Modi government incentives for new home buyers?

Apart from the most anticipated Income Tax relief, Budget 2020 may herald good news for new home buyers. The central government is mulling to provide income tax incentives to taxpayers who want to purchase a home. With an aim to push home purchase, the Modi government were discussing possible measure to increase tax incentive for new home buyers, the report said.

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