In his Budget speech, Mukherjee is likely to announce steps to consolidate the government's fiscal position.
Taxes and duties may be raised in the parliament as part of a partial rollback of stimulus prescribed by government's advisers.
The Economic Survey tabled in Parliament on Thursday, Feb 25, suggested that stimulus be withdrawn gradually, since the economy is on the rebound and the growth is broad-based.
According to sources, direct tax rates are not likely to be altered for the time being as the Finance Ministry is likely to wait for implementation of Direct Taxes Code from 2011-12.
Sources said that the Direct Taxes Code, which will replace the archaic Income Tax Act, is unlikely to come in the budget session.
Also expected is an increased tax free limit for medical reimbursement to Rs 30,000 from present Rs 15,000 per annum.