Budget 2019: Good news! 2 BIG announcements coming shortly for income tax payers, homebuyers?

Union Finance Minister Nirmala Sitharaman is all set to present the first Budget of Modi 2.0 after BJP-led NDA came to power having notched up a landslide victory in Lok Sabha Elections 2019. According to sources, Nirmala Sitharaman may make 2 big announcements for tax payers and homebuyers in the Budget 2019. The Income Tax slabs for FY19-20 may witness some big changes. Reportedly, as per sources, there can be two major announcements in Budget 2019. First, in good news for income tax payers 80C limit may be increased to Rs 2 lakhs per annum from the existing Rs 1.5 lakhs per annum. Second, there may a big announcement in terms of Income Tax slabs i.e. Modi 2.0 can increase the ambit of tax free income to Rs 3 lakh from existing Rs 2.5 lakhs. 

What this means?

If 80C limit witnesses increment to Rs 2 lakhs per annum and no tax up to Rs 3 lakh income under new income tax slabs, then tax payers need not pay any tax up to Rs 5 lakh income considering Rs 2 lakh investment under 80C.

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Budget 2019 and Interim Budget

Finance minister Nirmala Sitharaman will present her maiden Budget and is likely to fulfil many of the promises made by the Prime Minister Narendra Modi during his Lok Sabha poll campaign.

Taking forward the setting up of a separate ministry for fisheries (one of the promises made by Modi), the Budget will have schemes for ushering in a "blue revolution". The BJP's promise of allocation of Rs 10,000 crore for providing infrastructure like storage and marketing for small fishermen is likely to be fulfilled. 

In the Interim Budget, the government had proposed a rebate on all payable taxes if an individual's taxable income is up to Rs 5 lakh per annum. But it kept the basic exemption levels unchanged.