New Delhi: Ahead of the Union Budget, the government will on Friday present its Economic Survey. It is the summary of the economic performance of the nation in the past fiscal year.
The budget this year is likely to seek changes in the savings cap, medical reimbursement limit and exemption on housing loan interest.
The lowest income tax slab is likely to be raised from Rs 2.5 lakh to Rs 3 lakh, which means income up to Rs 3 lakh is likely to be exempt from Income Tax. There are also indications that even the higher IT slabs may be re-jigged.
This could act as a fillip for electronic and household items, consumer products among others.
The interest exemption on home loans is also likely to move up from the current Rs 2 lakh, in a bid to revive the housing sector.
The Centre is also likely to enhance bank recapitalisation from Rs 25,000 crore to Rs 30,000 crore. This comes in the background of news that twenty-nine state-owned banks have written off a total of Rs 1.14 lakh crore of bad debts between financial years 2013 and 2015.
CNN-IBN on Thursday met Finance Minister Arun Jaitley to ask for changes in five personal tax laws that the tax payer finds unfair and unjustified. We asked for incorporation of Easwar panel recommendations and guidelines on service charge. In 2015, some of our suggestions found a mention in the Budget like an increase in transport allowance and a hike in savings cap for the elderly.
Jaitley on Thursday was supposed to meet economists to get a grip on some quick-fix measures to package a bitter pill for the economy. But, the meeting with
economists and financial experts was called off due to pressing engagements of the Finance Minister.
Jaitley had met economists as part of pre-budget meetings in January. During that round, he had also met industry captains, bankers, farmers and trade union representatives.
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