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The Modi Government can be 'harden' in the budget; Taxpayers can get little bit 'relief'

Thursday - June 27, 2019 11:47 am , Category : BUSINESS
Many 'expectations' of the tax payers to the Modi Government
Many 'expectations' of the tax payers to the Modi Government

Probably this time Modi Government’s budget not to be tempting! 

JUNE 27 (WTN) - The Lok Sabha Election of 2019 was quite historic. It has done the first time in the history of India's Lok Sabha Elections when a political party other than the Congress has got a full majority. The people of the country once again expressed their faith on Prime Minister Narendra Modi, and the BJP led by NDA again formed the Government. After the massive victory in the Lok Sabha Elections, the Modi Government is expected a lot of hope from the people of the country. On July 5, the Modi Government is going to present its first full budget of its second term. The people of the country have great expectations from the Modi Government's budget that Prime Minister Modi will give relief to the people of the country in the budget.

But will it be done that the Modi Government will provide relief to the general public, or else the absolute majority Government will take tough decisions. Let's take a look at what can happen in the full budget of the second term of the Modi Government.

In every budget the taxpayers expect that the Government will give them some relaxation in the tax. In view of the Lok Sabha Elections, the NDA Government had given a big gift to tax payers in the interim budget presented in February this year, in which there was a full tax rebate relaxation started to the tax payers for income up to Rs 5 lakhs.

It is being said that tax rebate can also be given to other tax payers by changing the tax slab rate in this budget. It may be that the Government can increase the taxable limit to 5 lakhs rupees. At the same time, 5 per cent tax slab can be increased from Rs 5 lakhs to Rs 7.5 lakhs. There is also the possibility of increasing the 20 per cent tax slab from Rs 7.5 lakhs to Rs 12 lakhs. The highest 30 per cent tax slab can be increased beyond the limit of Rs 12 lakhs.

Taxpayers demand that tax deduction limit of 80C under the IT Act should be increased to Rs 3 lakh, which will give a lot of benefit to tax payers, especially for salaried people. The increase in the 80C limit will benefit those who have taken home loans. 

The Modi Government can also take some measures in this budget to promote transactions through e-payment. It is being said that the Government can provide some tax relief to income tax and GST tax payers. At the same time, the Government can take some measures to discourage to those who pay tax in cash.

It is being said that the Modi Government can once again put Cash Withdrawal Tax (CWT) with different rules and conditions. Banking sector experts believe that CWT can be levied on the amount of Rs 10 lakhs or more in a financial year. The experts believe that the motive of the Modi Government to put CWT may be to curb the spread of black money and to promote digital transactions. As you know, the RBI has already ended the charge on NEFT and RTGS for a few days ago, after which it is being said that the Modi Government may take some steps from its side also to promote digital transactions.

As you know, Prime Minister Modi has a dream that by 2022 everyone in the country has their own house. In order to fulfill this dream, the Modi Government is planning to provide house for the homeless people under the Pradhan Mantri Awas Yojana. In the same manner, people expect from the Modi Government that those who are buying the house for the first time should be given relief in tax. The Modi Government, however, extended the last date of its Credit Linked Subsidy Scheme (CLSS) to March 31, 2020, but it is being said that the Modi Government can extend it further.

As you know that every day the prices of petrol and diesel are reviewed, on that basis the prices of petrol and diesel are fixed every day. The inflation depends on the increase in the price of diesel, because if the cost of diesel is expensive then everyday using items become costly. It is being said that in this budget, the Modi Government can put GST on petrol and diesel.

There are many expectations of the people of the country to the Modi Government's budget, but the financial experts believe that the first full budget of the Modi Government's second tenure will not be fascinating. That is why, because the Modi Government with absolute majority can take tough decisions in the initial three budgets for the country's economic progress, through which can accelerate the economy of the country and raise money through tax for development works. Prime Minister Modi, who took hard decisions such as in the demonetization and the GST, is not afraid to take any kind of tough decisions. On the basis of this, it is being said that perhaps this time the budget is not going to be fascinating.