Interim Budget: Will Piyush Goyal tinker with income tax slabs?

Will interim budget 2019 increase the tax-exemption limit? This is the question on many taxpayers' minds. If rumours are to be believed, the interim budget could provide various tax benefits to the salaried middle class.

According to an ET Now report, the Narendra Modi government may look to dole out income tax benefits in its last Union Budget before the 2019 general elections. Some of the options considered by interim finance minister Piyush Goyal are a hike in savings limit, tax benefit for pensioners and more concessions on housing loans, as per the ET Now Report.

Similarly, according to an IANS report, the income tax exemption limit for the salaried class may be doubled from the current Rs 2.5 lakh to Rs 5 lakh. In addition to that, the interim budget may also bring back the medical reimbursement and transport allowance with its earlier tax status to provide relief for the salaried class, according to the report.

Here are the latest income tax slabs applicable to individuals below the age of 60 years.

Also Read: Latest income tax slabs
What has happened in past budgets
In Budget 2018, standard deduction of Rs 40,000 was introduced for salaried class in lieu of medical reimbursement which was tax exempt up to Rs 15,000 and transport allowance that was tax exempt up to Rs 19,200.

In Budget 2017, the tax rate for income between Rs 2.5 lakh and Rs 5 lakh reduced from 10 percent to 5 percent - a cut of 50 percent. This led to the tax savings of Rs 12,500 for every class of taxpayer.

Similarly, in Budget 2015, the tax-exempt limit on transport allowance was hiked to Rs 1,600 per month or Rs 19,200 annually.

The basic tax exemption limit was raised by Rs 50,000 from Rs 2 lakh to Rs 2.5 lakh in Budget 2014, which was the first budget of Narendra Modi government. Along with that, deduction limit under section 80C was also raised from Rs 1 lakh to Rs 1.5 lakh. Deduction on interest paid on home loan was also hiked by Rs 50,000 to Rs 2 lakh.