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The Government has announced that it shall present its
full budget on July 5, 2019. Taxpayer’s are optimist that
the Govt. may announce mega reliefs for them. Tax experts
believe that Smt. Nirmala Sitharaman may re-introduce the
inheritance tax. Amidst these rising expectations and wishes,
some people believe that as Govt. has already announced
some tax benefits during the interim budget including increase
in the rebate under Section 87A, it may not provide more
relief to the taxpayers in the full budget.
Every year, we compile a list of our expectations from the
upcoming Union Budgets. We predict and suggest changes
consisting of substantive and procedural modifications. It is
to our credit that many of our predictions have came true
in the Union Budget. This time also we have recommended
substantive/procedural changes and various other matters
which CBDT should clarify to end the controversy and to
bring about certainty in the Income-tax laws.
Our expectations from the Union Budget, 2019 are listed
below:
- More relief to individual taxpayers
The Finance Act, 2019 has increased Section 87A relief from
2,500 to
12,500 which is available to those resident
individuals whose total income does not exceed5 lakhs during the Previous Year 2019-20. However, if taxable income marginally exceeds the limit of
5 lakhs, the tax liability increases considerably. As the slab
rates have not been tinkered with and the relief is provided
by making amendment to Section 87A, the taxpayers would
be in disadvantageous position when they would even slightly
Expectations from and
Recommendations for Union
Budget 2019
June 29 To July 5, 2019 u Taxmann’s Corporate Professionals Today u Vol. 45 u 5