What are the Expectations on Income Tax Rebates from Budget 2018-19?

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The Finance Minister will present Union Budget of 2018-19 on the 1st of February, 2018. Many of taxpayers are excepting relaxation in tax and allocation of funds to provide other tax benefits schemes to the tax payers. Here are some highlights of what tax payers are expecting from budget 2018-19:

  1. It is expected to increase threshold limit of Exemption of Rs. 250000 on annual income of the assesses.
  2. Further expectations are to minimize the tax slab upon taxable income.
  3. It is also expected for an increase in limits of exemption upon different Tax Saving Plans/Schemes like EPF, Public Provident Fund, NSC, and LIC etc. The present deduction allowed is up to Rs.150000 jointly on saving under various schemes. At presently, Sec. 80C of Income Tax Act, 1961 a deduction of 150000/- on repayment of the principal amount of the home loan on residential property. But there are other sectors like PPF, LIC in which every person makes investment. So there is not much use of this deduction. The government should set a separate section of exemption on repayment of home loan.
  4. Women should be given special tax rebate and exemptions limits should be higher for women tax payers.
  5. Deduction on interest on Home Loan, the limit of which is at present Rs.200000/- be raised to Rs.300000/- in the hands of individuals who avail home loan.
  6. The finance minister should reconsider the age limit set for senior citizens for claiming reimbursement of expenses spent on medical treatment of senior citizens. Section 80 D provides this claim of deduction of Rs.30000/- for senior citizens who are above 80 years. Hence senior citizens of 60 to 80 age groups are not benefited of this scheme. Hence age limit should be reduced from 80 to 60.
  7. Medical expenses exemption limit is fixed up to Rs.25000/- which is very low at present era where medical expenses is getting higher. hence this limit should also be extends up to Rs.50,000/-

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