The government is preparing to give a big relief to the working class in the budget

 The government is preparing to give a big relief to the working class in the budget, know what will be the benefit

The worst-hit economy is the Coronavirus, which has hit the working class hardest. But now the central government can give tax exemption to the working class. In the next budget, Union Minister Nirmala Sitharaman may announce the exemption for the working class. In fact, some media reports are claiming that the government may increase the standard deduction limit, the medical insurance benefit, and the exemption limit under Section 80C of the Income Tax Act. This year, the working class suffered losses ranging from salary cuts to job losses. They may get some relief from this gift from the central government.

A media report quoted Ministry of Finance sources as saying that the budget 2021-22 is preparing to provide income tax exemption for job seekers. The announcement from the government may be to save some extra money for this class.

The standard deduction limit may be increased

Retail or wholesale inflation is also on the rise after the Coronavirus. Thus the items of daily life used in a man's house are becoming more and more expensive. The government believes that the working class should get some relief to reconcile low wages and rising costs. However, official sources said that the working class could be relieved by increasing the standard deduction limit. Currently, the standard deduction limit is Rs 50,000, which can be increased to Rs 1,00,000.

Also hope for relief in the premium limit of medical insurance

In addition to this exemption in the standard deduction, tax relief can be obtained on premium payments for medical insurance. In fact doctors have increased fees in the Corona era. The government can now also increase the discount limit on medical insurance premiums. Currently, under Section 80D of the Income Tax Act, tax deduction can be claimed on premiums up to Rs 25,000. This will include the premium credited to your policy including spouse, children. It also includes a medical checkup of Rs 5,000. If your parents fall into the category of senior citizen and you are the one to pay the premium then you can claim tax exemption up to Rs. 50,000.

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Changes to the tax slab are also possible

The report also claims that this time the Modi government may also increase the limit on the income tax slab. At present, no tax is payable on an annual income of Rs 2.5 lakh. At the same time, after fulfilling certain conditions, tax relief is also available on income up to Rs 5 lakh per annum. At present, it can be expected that the central government will remove income up to Rs 5 lakh from the taxable category by changing the income tax slab.