The budget session of Parliament has started on Monday. In this session, the budget is being presented in Parliament on 23 July. Finance Minister Nirmala Sitharaman is going to present the budget in the Lok Sabha. The country is very excited about this budget. This time there is going to be a lot of changes in the tax slab. The middle class of the country is looking at this budget with great expectations. The budget is going to be the first budget of the third term of the Modi government.
Income tax exemption
The country's largest population is expecting some relief in the budget on July 23. In India, there is no tax on annual income up to Rs 3 lakh. Experts say that in the budget, the government can increase it from Rs 3 lakh to Rs 5 lakh.
Through standard deduction and section 87A, people earning up to 8.5 lakhs per annum can get tax exemption. It is being said that those earning more than 15 lakhs can get relief from the government. 30 percent tax has to be paid on annual income of more than 15 lakhs. This can be reduced to 25 percent in the budget.
There may be a change in 80C
Many reports say that there may be a change in section 80C after 10 years. Its limit can go from 1.5 lakh to 2 lakh. Till now there is a provision to claim deduction up to Rs 1.5 lakh. If Nirmala Sitharaman makes any change in 80C on July 23, then there may be a facility to claim deduction up to two lakhs.
There will be exemption in HRA
Inflation is increasing a lot across the country. Its effect is also visible. House rent is becoming more expensive. The government can increase the exemption in house rent allowance. In such a situation, people can get relief in tax payment.
There will be a change in NPS
The government may consider making changes in the National Pension System. The scope of tax exemption may also increase. All eyes are on this scheme which provides relief to the people. The government can also make the National Pension System similar to EPF.
