SBI Ecowrap report suggested the government that the exemption limit be increased to Rs 3,00,000 after escalating it by Rs 50,000. This is said to be driven by an increase in the personal disposable income after the 7th Pay Commission. Union Budget 2018
According to the report, the move will shower benefits on around 75 lakh people, it said.
Not only that, SBI also put forward a request for the home loan buyers. It said that if the government escalates the exemption limit of interest payments under housing loan, around 75 lakh home load buyers will be benefitted. Union Budget 2018
The current exemption limit is Rs 2 lakhs and the bank suggested an increase by Rs 50,000 to make the home-loan exemption limit to Rs 2,50,000. The SBI’s report also estimated the government cost as Rs 7,500 crore. Union Budget 2018
“Due to 7th pay commission, the personal disposable income has been increased, so we believe there is a need to raise the exemption limit to Rs 3 lakh. Due to such increase in limit, around 75 lakh tax payers will be exempted from income tax,” said the report.
“This scheme will help farmers in situations (when wholesale price of the crop is less than the MSP) and the cost of which is only 10 per cent of farm loan waiver programme as per our estimates. Provision of A2 milk in Mid-day meals for children will create adequate additional income for 16 million farmer per year,” the report added. Union Budget 2018
The Union budget will be presented by Finance Minister Arun Jaitley on February 1, 2018. This will be the fifth and final full budget of the BJP government. Factually, the government increased the economic slabs to Rs 2.5 lakh in 2014-15 from the earlier Rs 2,00,000.
A lot of other changes are expected to be integrated into the Union Budget 2018. The highlight of the Budget however will be Infrastructure, Rural India and Agriculture.