It is that time of the year when employees and individuals start contemplating whether taxes will have a positive or negative impact on their income, based on the Union budget presented by the Finance Minister on the last day of February.
In his last budget speech, Finance Minister Arun Jaitley had stated: “As and when my fiscal capacity improves, individual taxpayers will have a lot to look forward to.” This would generally tempt to build high expectations among individual taxpayers. However, this is going to be a difficult year considering the optimistic fiscal deficit targets.www.taxxcel.com
Considering the pressure that the Seventh Pay Commission has put on government coffers, it is possible that the budget focuses on increasing the revenue than granting tax cuts. Having said that, individual taxpayers, specifically the salaried employees, should not be on the government’s radar for increasing tax revenue.
Discussed below are few pointers that may have an impact from an individual’s perspective:
Basic exemption: