News: Centre may hike Income Tax Exemption Limit from Rs.2 lakh to Rs.5 lakh

New Delhi: In what could probably become one of the landmark reforms by the Narendra Modi government, sources tell CNN-IBN that the Centre is likely to increase the Income Tax slab limit for exemption from Rs 2 lakh to Rs 5 lakh.

The Finance Ministry has also sought a report on the same from the I-T department, say sources. The CBTD is likely to submit a proposal by June 20, added sources.

Sources further said that the government is also considering raising the tax exemption limit on home loans and health insurance premium.

The health insurance premium is likely to be raised by Rs 5,000, as per sources. [CNN-IBN]

NEW DELHI: The Narendra Modi government may increase the income tax slab limit for exemption from Rs 2 lakh to Rs 5 lakh, CNN-IBN reported quoting its sources on Friday.

According to the report, the finance ministry has asked for a report from the income tax department to decide over the possibility of exemption in tax slab. CNN-IBN quoted its sources as saying that the Central Board of Direct Taxes ( CBDT) is likely to submit a report by June 20.

In another decision which could have a far reaching effect, the government is also considering to raise tax exemption limit on home loans and health insurance premium, the report said.

The health insurance premium is likely to be raised by Rs 5,000, it added.