New Delhi: The Union Budget to be presented on Wednesday is expected to increase exemptions on the personal income-tax leaving more money in the hands of the people hit by demonetisation.
Finance minister Arun Jaitley could also announce tax incentives for buying new houses to give a boost to the realty sector.
“Individual taxpayers are expecting a big rise in the exemption limit and not a token amount of Rs 10,000-Rs 20,000,” said industry chamber Assocham on Sunday. It said Mr Jaitley is faced with excessive hopes on his “solve-all” Budget.
“Meeting excessive expectations riding on the forthcoming Union Budget, being seen as a ‘solve-all’ big mover in the aftermath of demonetisation, could be a challenging task for Mr Jaitley,” pointed out Assocham.
However, the finance minister may also choose to hike service tax by 1 per cent till July when Goods and Services tax (GST) is targeted to be rolled out. The GST will subsume indirect taxes like Central and state levies such as excise duty, service tax and VAT.