Govt may offer tax releif in budget

Mumbai Jan 10: In a Move to provide relief for the taxpayers who have suffered during the economic reforms GST and demonetization the government may announce some relief in the upcoming budget.

The government is likely to change the tax slabs and also increase the tax limit . Sources said that the government would increase the tax exemption limit Rs 3 lakh from Rs 2.5 lakh.The government may also reintroduce the standard tax deduction scheme for salaried employees to at least Rs 1 lakh.

The tax rate between income of Rs 5 lakh -RS 10 lakh may be fixed at 10 % instead of 20 % and tax rate between Rs 10 lakh-Rs 20 lakh at 20 % and above Rs 20 lakh 30 % .Currently income above Rs 10 lakh is charged 30 % tax.

The government may also offer other incentives such as fixed interest on deposit scheme.