Quoting sources tell CNBC-TV18 the news report said that the Budget document may not announce any major exemptions for professionals due to lack of fiscal space.
"The government's "hands are tied" as there is limited room for big bold move in the Budgets," the report added, quoting sources.
The only exemption that may be hiked is the interest exemption on housing loans which could go upto Rs 3 lakhs from Rs 1.5 lakhs.
There have been expectations that the limit on tax exemption under Sec 80c of the Income Tax Act would be hiked to Rs 3 lakh from the current Rs 1 lakh, while the basic tax exemption limit on Income Tax would be hiked to Rs 5 lakh.
The common man could be hugely disappointed if there are no sops offered in the Union Budget, since there are very high expectations from the new government under Narendra Modi.
However, the government is likely to face severe constraints in offering sops to the salaried class given the huge fiscal deficit, following a rise in subsidy costs.