The upcoming budget may increase the tax-exemption limit for individuals from the current 2.5-liter suit and introduce a higher 40 percent tax on those with income above Rs 10 crude, according to a KPMG survey.
In a survey conducted by KPMG (India) before the budget for the period 2019-20, the response included a response of 226 respondents from different sectors.
Incredible 74 percent of respondents thought the tax exemption threshold could be increased by 2.5 rupees, while 58 percent said the government would consider a new 40-percent tax plate for "super-rich" – those who earn over 10 KM crore.
While only 13 percent of respondents believe that inheritance tax will be recovered, 10 percent believe that there is a chance to reinstate property taxes, according to research.
In order to increase demand for housing, 65 percent of respondents thought the budget could increase the limit on the tax deductions for interest on a housing loan for own property from the current 2 lakh.
Also, 51 percent stated that the government could exempt the deduction for the repayment of housing loan principal from the existing total deduction limit of 1.5 lakh in section 80C.
However, 53 percent of respondents do not expect Finance Minister Nirmala Sitharaman to make any major direct tax changes in the budget that will be released on July 5th.
Also, 46 percent of respondents thought the tax rate would not be reduced to 25 percent for all businesses, as the industrial chambers demanded at a Sitharama meeting before the budget.
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