With Union Budget just around corner, all eyes remain on annual financial document and in it, any relief in terms of taxes for common man.
Financial experts where on one hand expect government to make announcements in form of tax reliefs, on other, widenedfiscal deficit may be a dampener for government.Here's what wealth planners say on their expectations from upcoming Budget.Rahul Agarwal, director, Wealth Discovery/EZ Wealth:"We expect government to give some relaxation in tax exemption threshold of Rs 2.5 lakh; we would not be surprised if government raises it to Rs 5 lakh as tax mop-up from people reporting income of Rs 10 lakh or less is not a big component to government tax kitty.""We also expect that there would be some relaxation under Section 80C from current Rs 1.5 lakh.
The tax slabs may be tinkered too and for people falling in Rs 500,000 to Rs 100,0000 there can be some relief in terms of lower taxes.""The imposition of LTCG (long-term capital gains) tax was a major dampener to stock markets in immediate aftermath; therefore we do not expect government to make it more severe or stringent."Dinesh Rohira, founder and CEO, 5nance:"It is unlikely that government will do away with long-term capital gain tax on equity which came into effect last year.
Hence, there is no major concerns apart from bring down period on long-term capital gain for debt investment.""It might also reconsider raising standard deduction which didn't go well among middle-class in previous budget."