Union Budget 2016-17 to be presented today; Income tax exemption limit likely to be hiked

On the income tax front, the Budget 2016 may continue with the status quo on the tax slabs while it may tinker with the exemptions.

Last Updated: Feb 29, 2016, 08:57 AM IST
Union Budget 2016-17 to be presented today; Income tax exemption limit likely to be hiked

Zee Media Bureau

New Delhi: Finance Minister Arun Jaitley will present his third and challenging Budget on Monday as he seeks to garner resources to boost public spending for higher growth amid global headwinds.

On the income tax front, the Budget may continue with the status quo on the tax slabs while it may tinker with the exemptions.

 

While Jaitley has previously outlined his intention to reduce corporate tax from 30 to 25 percent before the next election, today is expected to be the first time he lays out a detailed roadmap to reach that target.

It is expected that he may begin the exercise in the Budget today that may be accompanied by withdrawal of tax exemptions to keep the exercise revenue neutral.

 

To shore up revenues to meet the increased expenditure, the finance minister may need to increase indirect tax rates or introduce new taxes. Service Tax, raised to 14.5 percent last year, may see a hike to prepare for the level of 18 percent being envisaged in the GST.

With the halfway point of Narendra Modi government approaching, experts say the Budget has to tackle the failure to translate those bold pledges into action while stimulating consumption at the same time.