New Delhi: Finance Minister, Arun Jaitley is likely to hike the tax savings investment limit to Rs 2 lakh in the forthcoming Union Budget to increase savings across the country and provide some relief to the middle class and salaried people.
Arun Jaitley could also increase the personal income-tax exemption limit and may rejig tax slabs that will provide more relief. Last year, Jaitley had hiked the tax savings investment limit by Rs 50,000 to Rs 1.5 lakh and raised the income-tax exemption limit to Rs 2.5 lakh. “Increasing the tax savings investment limit is under active consideration as it will meet the twin objectives of increasing savings and give relief to taxpayers; mostly the salaried class, a government source said.
India’s national savings rate has dipped to 30 per cent from a high of over 36.9 per cent in 2007-08. Earlier this month, RBI governor Raghuram Rajan had asked the Centre to increase the tax exemption limit on financial investments by individu
