India
oi-Deepika S
New Delhi, Jan 11: Amid a global pandemic, the central government may hike the standard deduction limit available to salaried taxpayers and pensioners by 30-35% in the upcoming budget. However, income tax slabs are likely to remain unchanged given the limited fiscal headroom.
“There are many suggestions on personal taxation. This year one common demand was to enhance the limit of standard deduction, especially considering inflated cost of medical expenses on account of Covid-19,” a senior official from the finance ministry told The Economic Times.
The government’s move is seen as a relief to salaried employees and pensioners due to rising expenses because of the Covid-19 pandemic.
The standard deduction limit will not be applicable to eligible taxpayers who opt for the new income tax structure.
It may be recalled that a standard deduction of Rs 40,000 was introduced in 2018 and it…