The government is considering to increase the personal income tax threshold in Budget 2019-20, according to a Bloomberg report. Budget 2019-20 is set to be presented by Finance Minister Nirmala Sitharaman on July 5.
As per the report, the tax exemption limit for working-age individuals may be raised to Rs 3,00,000 of their annual income, up from the current Rs 2,50,000.
The proposed tax move would put at least Rs 2,500 more in the hands of each of India's 50 million taxpayers, it added. The report further said that it could also add to pressure on the budget deficit, pegged at 3.4 percent of gross domestic product for the current fiscal year that began on April 1.
Finance Minister Nirmala Sitharaman will present the full-year budget for financial year 2019-20 on July 5. This will be the first budget of the Prime Minister Narendra Modi-led National Democratic Alliance (NDA) government after securing a massive mandate in May. The Budget Session began on June 17 and will end on July 26.