Income tax return (ITR) exemption limit: Middle Class taxpayers may get a very huge relief by Finance Minister Nirmala Sitharaman as Modi govt is expected to increase the basic exemption limit from 2.5 lakh to 5 lakh & standard deduction from 50000 to 100000.
This will relive a large segment of middle class direct tax payer and put more money in their hand which inturn will lead to higher savings and creating more immovable assets.This step if taken will also help affordable housing sector of realestate.As per reliable sources Finnace ministry officials are working regoriously to find out the actual no of middle class direct tax payers(expected around 2.5cr to 4cr)who will fall out and have zero tax liability.
Govt is working out in it as a part of atmanirbhar Bharat initiative to help middle class segment of India to recover from covid 19 pandamic economic effect quickly. Further in budget 2020 basic exemption limit was kept unchanged for all opting for old tax slabs and for those opting for new tax slabs standard deduction is not applicable.In 2018-19 medical reimbursement and travel allowance was also removed from standard deduction. Overall since last few years there was no benefit for middle class segment direct tax part.So govt is working out to relieve a large segment of direct tax payer in this year budget season.