As per a leading business news channel report, the Union government is looking to make the new personal income tax regime more lucrative for the salaried taxpayer category. This shall be done to encourage wider adoption of the new tax regime. Further as per sources, there are expectations that interest against home loan and standard deduction may be clubbed.
"House rent and medical insurance premium may also be included under new tax regime. Finance Minister Nirmala Sitharaman is also expected to encourage taxpayers to shift to new direct tax scheme and give away other exemptions. Talks are even underway on more relief for individual taxpayers," added the sources as cited in the report.
Following are the proposals that are under consideration:
1. Increase in the current standard deduction limit
2. Hike in the limit for medical insurance premium
3. Making capital gains tax rule much simpler
Nevertheless no final call has been taken currently and the direct tax proposals may be finalised post January 20.