The central government under the leadership of Narendra Modi is preparing a wonderful gift for the employees section. It is said that the government is mulling over the increase of no taxable income from the existing 2 Lakhs to 5 Lakhs. Currently the issue is in the purview of income tax department and central finance ministry. Government is planning to incorporate this in the union budget to be announced in the next month.
Sources say that the limit will be certainly increased to 3 Lakhs which is a long standing demand and any thing above that is also certainly on cards for the moment. Efforts are also on to increase the tax exemptions for Home Loans and Health Insurance Policies. The government will revise the entire slab structure of income tax in the process. Analysts say revision in the current income tax will enhance people’s disposable income, which, in turn will boost consumption spending as well as savings.
