Just a few months before PM Narendra Modi’s government officially completes its tenure, the incumbent government will table its final budget ahead of the Lok Sabha elections. As the Finance Minister Arun Jaitley is likely to present the first interim budget on 1st February 2019, there are speculations about whether the income tax exemption limit double up?
Since the current government will be unable to introduce an established ‘Union Budget’ in this election year, they will be presenting the interim budget in the Lok Sabha-Rajya Sabha joint sitting in the Parliament. Since Modi-led government is about to complete its tenure and as a run-up agenda to the general elections, the incumbent government endeavors the Parliament’ vote of approval so as to meet the ends of its budget outgo, before the financial year ends on 31st March – and Jaitley recently hinted in a speech that the government might make some big announcement.
It must be noted that conventionally, all the 12 interim budgets presented after independence didn’t come up with new big announcements to ensure that the incoming government can present the full budget. But, considering the threshold of various factors that can affect the vote-bank of the ruling party, chances are that the government might deviate in terms of making big news in the budget. Among all, the common man’s speculation is about the possibility that the exemption of the income-tax threshold-currently Rs 2.5 lakhs, by the Finance Minister, could be doubled for the salaried taxpayers. The higher income tax exemption limits are intended to off burden on middle-class society members.
Other than this, the government might also introduce an annuity supporting scheme for the farmers as a contrary to declaring major tax proposals, could serve as a centric and populist point for the presentation; the 10% quota for upper casts already served as one. However, the ;Direct Tax Code Report’ unveiling following the ‘Union Budget’ can be problematic. As decided in the CCPA meeting, the Parliamentary Budget Session, starting from 31st January, will last up to 13th February 2019.