With so many circulations on last year’s budget submission by the current finance minister Mr. Arun Jaitley, the upcoming 2018 budget session already started to roar among the financial experts all around the nation. The current NDA government is look to offer fresh benefits to the middle class people in the upcoming 2018 budget session.
On the last year’s budget submission, the FM Mr. Arun Jaitely has quoted that the nation has become a high amount of tax non-compliant society. Well the fact has been proven by the income tax department by releasing the statistical report that in the financial year of 2015-16 about 2.4 Lakh people are the tax payers.
- As per the reports quoted by the income tax department about 3.7 Cr people have filed their income tax returns and in those 99 Lakh people have claimed as their total annual income was below the tax exemption limit of Rs. 2.5Lakh.
- That data leaves only 2.8 Crore people are the eligible tax payers in the country. Well among those eligible tax payers, 2.5 Lakh tax payer’s annual income was below 10Lakh, nearly about 24 Lakh people showed their annual income as over the 10 Lakh, and 1.7 Lakh people mentioned their income as above 50 Lakh.
“The interesting point is people who mentioned their income below 10Lakh and pays their income tax are from the middle class.”
Budget 2018 will offer benefits to middle class people:
As the budget section will play the important role in the upcoming general elections, it is expected that the current ruling part BJP will offers various benefits to the middle class people. Though, there has been several rumors revolving on the tax package, the final decision will be taken after the meeting of FM. Mr. Jaitley and PM Mr. Modi.
Expected Pros and Cons of Budget 2018:
The 2018 budget is expected to deliver some high attractive features like increased in the tax exemption limit to over 2.5 Lakh which boost the middle class people to enjoy more rewards and tax benefits.
However, experts believes that that the tax exemption limit will be increased in return of tax deduction there would be the certain tax deduction which also includes the less attractive existing norms like health insurance, taxes on fixed deposits and other standard deductions.
People would be able to enjoy the high benefits from their health insurance, and relief for the small term investment on bank fixed deposits. By doing so, it will boost people to invest their money in the finance instruments instead of investing money over the surplus funds or any other physical assets like gold and so.
Well, experts believes that the re-introduction of long term capital gain tax and Securities Transaction Tax (STT) will be introduced followed by the suggestion made by the BSE (Bombay Stock Exchange) in current and in the past.
According to the resources, the current BJP government plans to introduce several flagship programs to boost public on investing in financial instruments over the assets or any other insecure funds.