Understanding the steady rise in middle-class apathy, Union Finance Minister Arun Jaitley may double the income tax exemption threshold for the salaried class to Rs 5 lakhs from the present Rs 2.5 lakhs.
This will be Vote on Account budget in the wake of next year’s parliamentary elections.
It is likely that Jaitley may also reinstate tax-free status for medical expenses and transport allowance, providing some relief to the section already under strain since demonetisation.
Though propriety demands that not too many policy changes should be made in a vote on account budget,
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The BJP government is apprehensive of the possibility of a middle-class backlash in the impending general elections. Hence, the plan to streamline tax slabs, which in any case are in consonance with the coming Direct Tax Code, government sources a news agency.