MIDDLE CLASS/WOMEN/SENIOR CITIZENS interim budget 2019

Resevation quota and tax

Finance minister cannot ignore this community because of the sheer numbers it represents. With the 10 per cent reservation quota proposing all up to Rs 8 lakh of annual family income as economically weaker, there’s pressure on the Centre to take provide relief in personal tax to get the non-taxable portion as close to the new Rs 8 lakh benchmark as possible.

Senior citizen

Expect a Rs 50,000 increase in basic exemption limit to Rs 3 Lakh; Rs 3.5 lakh for senior citizens (60 to 80 years of age) and Rs 5-5.5 lakh senior citizens above 80 years of age. Working women who enjoyed a higher basic exemption limit until a few years ago are likely to be given the privilege yet again with a limit of Rs 3.5 lakh.

Raising 80C limit

Yet another effort at edging towards the Rs 8 lakh limit could be in raising the 80C limit (towards deduction in home loan payment, investments, children’s tuition fees) from Rs 1.5 lakh to Rs 2 lakh, leaving higher disposal income in hand. If the FM feels still more generous, he may even raise the standard deduction limit of Rs 40,000 to Rs 60-70,000. If the exemption towards loss from occupied house property is also raised from Rs 2 lakh to Rs 3 lakh, it would be a bonanza for the middle class.

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