Budget 2019 expectations: The Confederation of Indian Industry (CII) has recommended that Prime Minister Narendra Modi-led NDA government bring back the Income Tax exemptions for reimbursement of medical expenses and transport allowance along with the standard deduction of Rs 40,000 in the upcoming India Budget 2019. The industry body in its pre-budget 2019 memorandum has also recommended that the provisions of section 17 should be amended and retired employees must be entitled to the tax benefit on medical reimbursements as well as hospitalisation expenditure. The income tax exemptions should be applicable to both domestic and foreign medical treatment, as per the proposals sent by CII.
Apart from this, the CII has sent a proposal that long term capital loss should be allowed to be set off with short term capital gain and the difference in the tax rates under these sources of income should be paid. CII has asked the government to raise the limit of deduction under Section 80C from the present Rs 150,000 to Rs 250,000 citing that this would provide saving opportunities to the public at large.
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The CII has also sent a proposal to remove taxability of Contribution by Employer to superannuation fund under Section 17 in line with the taxability of contribution by Employer to Provident Funds. The CII said that this would avoid double taxation.
In Budget 2018, Finance Minister Arun Jaitley introduced the Rs 40,000 Standard Deduction in place of Income Tax exemption given to transport and medical expenses. Earlier, one does not need to pay tax for Rs 19,200 of transport allowance and medical expenditure of up to Rs 15,000.
Finance Minister Arun Jaitley will present Modi government’s last Budget before the Lok Sabha polls 2019 on February 1. With elections round the corner, speculations are rife that Jaitley’s Budget 2019 will have populist undertones to appeal to voters.
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Source: Financial Express