Despite the Modi 1.0 government announcing some tax relief in the interim Budget in February, there are expectations that the finance minister may announce some more relief on the income tax front on Friday but not much. 1) Higher income tax exemption limit: The finance minister may raise the tax exemption limit for individuals to ₹3 lakh of their annual income, up from the current ₹2.5 lakh, Bloomberg had earlier reported, citing sources. 2) More income tax relief on NPS withdrawal: In December last year, the government had hiked the tax exemption limit for lumpsum withdrawal on exit from NPS to 60%. With this, the entire withdrawal will be exempt from income tax. 3) Higher Section 80C Deduction Limit: The Finance Ministry is also looking at raising the tax exemption limit for savings and investments made under the Section 80C of the Income Tax law, Bloomberg had reported, citing sources.

Source: Mint July 02, 2019 02:01 UTC