The State Bank of India (SBI) has reported on Monday about the Income Tax exemption limit to Rs 3 Lakh. As a result of increase in personal disposable income post 7th Pay commission this move was introduced. Due to this move, 75 lakh people are going to be benefited asper SBI. The SBI’s Ecowrap report also said that if the exception furthest reaches of interest payments under house loan is expanded to Rs 2.5 lakhs for existing home loan purchasers, from Rs 2 lakhs now, it will profit 75 lakh home loan buyers and cost the administration pretty much Rs 7,500 crore.
SBI Report Says ‘Income Tax Exemption Limit to Rs 3 Lakh’
Finance Minister Arun Jaitley is set to introduce the 5th and last full budget plan of the present government on February 1. The government has intermittently expanded the salary assess parts from Rs 22,000 of every 1990-91 to Rs 2.5 lakh in 2014-15.
“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 — ‘Union Budget: If wishes were horses!’.
It has also pitched for boosting saving through bank stores. With an end goal to incentivise saving, it stated, the administration can have absolved interest of savings banks deposits. As far as possible on TDS on interest on term stores with banks might be raised from the present furthest reaches of Rs 10,000 for each annum.
The secure period for tax savings term deposits should be decreased to 3 years from the present 5 years and these savings ought to be brought under EEE (exempt, exempt, exempt) tax administration. The SBI report said that SBI’s assumptions with respect to the pending budget plan depend on rule of comprehensive development and meeting the medium and long term goals set by the Government.
“As per our reading of the things, budget should give priority to agriculture, MSME, infrastructure and affordable housing,” it said.
Agribusiness changes should go for reconsideration of lawfully made structures whose provisions are prohibitive and make barriers to free trade, it said. Centre in conjunction with states ought to copy the price support plans like in Madhya Pradesh and Haryana say ‘Bhavantar Krishi Yojana’ for major crops (counting vegetables).
“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 said.