There is bad news for the salaried class. Finance Minister Arun Jaitley in his budget speech has not announced any change in income tax.
This would come as a major disappointment and is also bad news for the consumer sentiment as there is no change in the tax slabs.
Jaitley said that the Modi government has made many positive changez in income tax rates applicable to individuals in the past three years. He however added that no change has been made in the income tax slabs.
Standard deduction of Rs 40,000 with respect to transport reimbursements. The standard deduction is in lieu of travel and medical expense reimbursement, which amounts to Rs 30,000. So the actual tax benefit would Rs 10,000 for each taxpayer. For senior citizens, there will be no tax on income earned through interest in tax deposits.
100% tax deduction for the first five years to companies registered as farmer producer companies with a turnover of Rs 100 crore and above. 12.6% growth in direct taxes in 2017-18; 18.7% growth in indirect taxes in 2017-18. Employment-based tax incentives will be extended to footwear and leather industry. Be incentivising MSMEs, we propose to extend the benefits of corporate tax by bringing down the tax rate to 25% for firms that reported turnover up to Rs 250 crore," Jaitley also said.