Budget 2020 Date India, Time, Expectations: Taxpayers can look forward to a lot when Finance Minister Nirmala Sitharaman presents her second Union Budget speech in the Parliament on February 1. If reports spilling out of the Finance Ministry get true, the Central government may announce several measures to put more money in the hands of taxpayers in order to boost demand and household savings. These reliefs could be in the form of a change in tax slabs, a raise in standard deduction limit, provision to claim more deductions under Section 80C of the Income Tax Act. Some changes may be announced to make schemes like National Pension System (NPS) popular among the working people, especially the young and the salaried. However, one shouldn’t be much surprised if the Budget doesn’t provide any new income tax relief as it will have a negative effect on the Centre’s direct tax collections. As the excitement builds for Budget 2020, we track all the top expectations and analysis of how you will be impacted.
Budget Impact Analysis: How rich Modi govt’s budgets have made you since 2014
A year before the Narendra Modi-led NDA government, in the financial year (FY) 2013-14, the tax exemption limit was up to Rs 2 lakh for people below 60 years of age, while the limit was Rs 2.5 lakh for people in the age group of 60 to 80 years and Rs 5 lakh for people over 80 years of age. The lowest tax rate was 10 per cent and maximum deduction u/s 80C of the Income Tax Act was Rs 1 lakh and the limit u/s 80D was up to Rs 15,000 on health insurance premium paid for self and family by individuals below 60 years of age and up to Rs 20,000 for senior citizens. READ Full Analysis
From TDS on cash, Standard Deduction to Income Tax relief – Revisiting Budget 2019
The Budget date this year is going to be February 1, 2020. Before the Budget 2020 session and the actual presentation of the budget by Finance Minister Nirmala Sitharaman takes place, let us revisit the year 2019 to have a quick look at some of the Budget 2019 highlights. Read Full Story
Double National Pension System Benefit expected
Finance Minister Nirmala Sitharaman is expected to encourage household savings and announce several measures to boost the economy. The Government may also consider doubling the tax benefit on National Pension System (NPS) contributions from Rs 50,000 to Rs 1 lakh. Rachit Chawla, Founder and CEO, Finway told FE Online, “Tax benefit under the NPS should be doubled from current Rs 50,000 to Rs 1 lakh and the government should extend the facility of the tax-free contribution of 14 per cent by the central government to its employees under the NPS to all categories of subscribers.” Read More
Check eligibility for tax-free income up to Rs 5 lakh in FY 2019-20
Several reports suggest that the upcoming Budget on February 1 may see a rejig in personal income tax slabs. However, the benefit of such a rejig would be applicable while filing Income Tax Return (ITR) for FY 2020-21. For filing ITR of Financial Year 2019-20, the current rax slabs would apply. Read Full Details
When is Budget 2020? Check Date, India Time
Union Budget 2020 will be presented by FM Sithraman on February at 11 am in the Parliament. You can read all details about timings of Budget speech here
Budget Expectations: Public Provident Fund (PPF) deposit limit hike
Ahead of the budget, it has bee reported that the govt may raise PPF deposit limit to Rs 2.5 lakh. The PPF limit raise could be in sync with a raise in Section 80C deduction limit. “Raising the PPF annual deposit limit to Rs 2.5 lakhs needs to be in sync with the limit for deduction under Section 80C of the Income Tax Act, which should also be raised so that the taxpayers not only get the benefit of higher deduction but also the interest on PPF on the additional amount of Rs 1 lakh,” Divya Baweja, Partner, Deloitte Haskins & Sells LLP, recently told FE Online. Read More Here
Income Tax slab change expected
Tax experts believe that a tax-free income up to Rs 8.75 lakh could be possible if the government increases Section 80C deduction limit to Rs 2.5 lakh. “It would leave more disposable income for consumer spending and demand revival. A salaried individual can have a tax free income up to Rs 8.75 lakh after claiming a standard deduction of Rs 50,000 and the deductions for savings of Rs 2.5 lakh under section 80C, NPS of Rs 50,000 under section 80CCD(IB) and medical insurance of Rs 25,000 under section 80D,” said Archit Gupta, founder and CEO, Clear Tax. Read Details
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Will govt make Senior Citizen’s Savings Scheme (SCSS) tax-free?
SBI Research has suggested the government to provide full tax rebate on Senior Citizen’s Savings Scheme (SCSS) in the upcoming budget. “Government has an excellent scheme for senior citizens. Under the Senior Citizens Savings Scheme (SCSS), a senior citizen can deposit Rs 15 lakh and the current interest rate is 8.6%. However, the interest on SCSS is fully taxable which is a major drawback of this scheme (the interest amount for Rs 1 lakh deposit for 5 years is around Rs 51,000 which is taxable),” SBI Research said recently.
Top changes by Modi govt since 2014
Since assuming office in 2014 — after a landslide victory — PM Narendra Modi-led Union government has brought about various changes ranging from shifting the budget date to ditching the age-old practice of carrying budget documents in a briefcase. Check all changes here