With the Union Budget just around the corner, all eyes remain on the annual financial document and in it, any relief in terms of taxes for the common man. Financial experts where on one hand expect the government to make announcements in the form of tax reliefs, on the other, the widened fiscal deficit may be a dampener for the government.
Here's what wealth planners say on their expectations from the upcoming Budget.
Rahul Agarwal, director, Wealth Discovery/EZ Wealth:
"We expect the government to give some relaxation in the tax exemption threshold of Rs 2.5 lakh; we would not be surprised if the government raises it to Rs 5 lakh as the tax mop-up from people reporting income of Rs 10 lakh or less is not a big component to the government tax kitty."
"We also expect that there would be some relaxation under the Section 80C from the current Rs 1.5 lakh. The tax slabs may be tinkered too and for people falling in the Rs 500,000 to Rs 100,0000 there can be some relief in terms of lower taxes."
"The imposition of the LTCG (long-term capital gains) tax was a major dampener to the stock markets in the immediate aftermath; therefore we do not expect the government to make it more severe or stringent."
Dinesh Rohira, founder and CEO, 5nance:
"It is unlikely that government will do away with long-term capital gain tax on equity which came into effect last year. Hence, there is no major concerns apart from bring down the period on long-term capital gain for debt investment."
"It might also reconsider raising the standard deduction which didn't go well among middle-class in previous budget."