Arun Jaitley,the Minister of Finance and Corporate Affairs of the Government of India may double the income tax exemption threshold for the salaried from Rs 2.5 lakh currently to Rs 5 lakh and reinstate tax-free status for medical expenses and transport allowance.
For the Feb 2019 Budget speech, speculation is rife on what he may end up offering Indians just months ahead of the general elections. The wish list of the common man as well as industry chambers includes income tax sops, and the buzz is that the government is likely to give in.
Task Force setup by Jaitley to bring the International Best Practices:
Last November, the finance ministry had set up a six-member task force to rewrite the over 50-year-old Income Tax laws in line with the norms prevalent in other countries, incorporating international best practices while keeping in mind the economic needs of the country.
The new Direct Tax Code will reportedly try to bring more assessees into the tax net, make the system more equitable for different classes of taxpayers, make businesses more competitive by lowering the corporate tax rate, and phase out the remaining tax exemptions that lead to litigation.