Union Budget 2019: Income tax exemption limit likely to be increased to Rs 3 lakh, says report

In a decision that will bring cheers to the middle-class, the government is likely to increase the income tax limit to Rs 300,000 from the current threshold of Rs 250,000, Bloomberg reported. The change is expected to be introduced during the upcoming Budget on July 5 and is expected to aid economic growth, the report said.

The move to increase the personal income tax threshold to Rs 300,000 is aimed at countering the economic slowdown and falling consumption in the country, added the report.

Finance minister Nirmala Sitharaman is looking to widen tax exemptions after the economy witnessed its lowest growth rate of 5.8 percent in the last quarter, said the report. The new proposal, if it becomes a reality, will directly benefit the nation’s five crore taxpayers who will end up saving an additional Rs 2,500 in annual income taxes, the report added.