Income Tax Exemption is Rs 5 Lakh

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Income Tax Exemption is Rs 5 Lakh

Income Tax Exemption is Rs 5 Lakh

The Central government may offer relief to tax payers to counterbalance rising inflation. Finance Minister Arun Jaitley might announce the increase in income tax exemption limit to Rs 3 lakh from Rs 2 lakh 50 thousand in Budget 2018-19, to give more money to the masses to spend and invest. Sources told Hindustan that a proposal to increase the limit was made to the Finance Ministry. Last year, Arun Jaitley had not changed the limit for tax exemption. However, tax between income of Rs 2.5 lakh to 5 lakh was lowered from 10 per cent to 5 per cent. This is the last full budget before 2019 general elections; hence, it makes more political sense to increase the limit.