5 Major Expectations from the Indian Budget 2020

The union Indian budget is just around the corner and the countdown has already begun. Whether it is the consumers, taxpayers, financial experts, and businesses, everyone has their focus on the upcoming budget. Most people are expecting a fair budget from Union Finance Minister Nirmala Sitharaman. People, at least the common salaried employees are expecting tax cuts and a reduction in the prices of daily necessities from the union government. Here are the five key predictions related to the Indian budget in 2020:

1. Relief for the common taxpayers

The fundamental exception limit must be raised to three lakh INR per annum for an individual salaried person and 3.5 lakh INR for the aged citizens of India and six lakh INR for the super senior citizens of the country.

The team, formed by the central government to outline new tax laws, as well as suggested rationalization of the individual tax rate. It has suggested five tax ranges of five percent, then 10 percent, the next 20 percent, and finally 30 percent as well as 35 percent. Time will tell what tax cuts the salaried employees will receive in the upcoming budget.

2. More deduction for home loans

It is suggested that the union government must promote the real estate sector by providing an increased deduction for rates of interest on property loan and mull over raising the limit to 250,000 INR for a single self-possessed real estate property and 300,000 INR for double self-possessed real estate properties.

3. Number of cities under the metropolitan umbrella

In the current time, more deductions are permissible if an employee is residing in any of the four major and big metropolitan cities such as Mumbai, Kolkata, Delhi, and Chennai. At present, the leasing costs for a property in cities such as Hyderabad or Bengaluru are equivalent to or more than what it is for a renter in a city like Delhi. Consequently, there is also a pressing requirement of insertion of numerous other cities in this group such as Bengaluru, Pune, Hyderabad, Ahmadabad, Gurgaon, Jaipur, and Noida.

4. Increase the exemption limit for minor earnings

Right now, the earnings of minors incorporated in the hands of parents are off the hook to the amount of 1,500. The standard spending to meet the rate of a minor’s, health, education, lifestyle costs that have increased significantly in the last few years is sadly insufficient. It is recommended that this limit must be increased to a minimum of 5,000 INR for each minor. Now, what the union government will decide is up to them and therefore, all have an eye on the upcoming budget.

5. LTA for travelling in foreign countries

As of now, an employee is eligible to assert an exemption for his or her leave travel allowance or LTA allowed to him or her by the employer or company for going for a holiday anywhere in India. Now, this exception is still permissible only for vacations within the country. It is suggested that the exclusion should be permitted for Indian tourist destinations and for foreign travel.

Final thoughts

Everyone is eagerly looking forward to the Indian budget in 2020. Let us see what it has in store for the common taxpayers and consumers in the days to come.