Union Budget 2019: How About this Year Tax Tweaks!
Modi government extended benefits for individual taxpayers in the initial years of its rule by enhancing the deduction limits of health insurance, transport allowance, and house loan interest.
Salaried taxpayers, last year, were unhappy with the government introducing standard deduction while taking away the benefits for transport allowance and medical reimbursement.
So, now, here the doubt arises if government this poll year tweaks the tax slabs? The largest number of taxpayers in India is at the lowest slabs, though the numbers are large, the revenue generated from this category is relatively small.
So, there are chances that the tweak would incur revenue loss, but it wouldn’t be a big blow.
The government has budgeted for collections of Rs 5.29 lakh crore in 2018-19 from personal income tax. So, the revenue loss would be anywhere between 2 – 10 percent of its current collections.