Modi’s interim budget doubles income tax limit to 5 lakhs. Benefits salaried class, sr citizens, small entrepreneurs n pensioners.

The BJP led NDA government in order to counter the non BJP opposition’s increasing onslaughts has given unexpected concessions to the middle and lower middle class of the country especially the salaried class which is considered to be the opinion makers of the country.

Since, the general election is just three months ahead with code of conduct likely to be imposed in the month of March, the union government led by prime minister Narendra Modi is leaving no stone unturned to please all sections of the society especially after suffering a serious drubbing in the three Hindi heartland states and confronting special challenge from the new credible pre electoral alliance between the BSP n SP in UP with Congress party’s Priyanka Gandhi also taking a credible plunge in the Uttar Pradesh politics in particular as a new general secretary, incharge of East Uttar Pradesh.

The revolutionary announcement in today’s inyerim budget which will tremendously benefit crores of the central as well as the state government employees is the doubling of the the rebate limit in annual income tax from the earlier 2.5 lakhs to 5 lakhs. This means, that the Rs 15080 tax charged on the annual income of Rs. 5 lakhs would be nil now.

This tremendous rebate, biggest given by any finance minister during the last seventy years is going to sqarely benefit the salararied class, the pensioners, senior citizens, the small entrepreneurs n various other sections earning less than five lak a year.

The executive finance minister Piyush Goyal, minister of Railways n Crporate Affairs, has by this announcement while given major relief to the the aforesaid classes making them extremely jubilant , it has also contributed in countering the increasing opposition impact on the electorates of the country on anti govt propaganda to some extent.

According to Goyal this enhancement would benefit about three crore income tax payees. In addition to this increase, the government has also enhanced the limit of income tax standard deduction from 40 thousand to fifty thousand.

Crores of the post office savers of the country have also been benefitted by the government’s enhancement of tax benefit from 10 thousand intrest income limit to 40 thousand. Now there will be no tax till the interest income of 40 thousand on savings. The government has also launched the pension scheme for the domestic workers. The government has also enhanced its share in the newly introduced pension scheme.

The gratuity payment limit has also been increased manifold from 10 lakh to 30 lakhs. The contribution limit also got enhanced from 15 thousand to 21 thousand.

There are several other concessions granted like enhancement in EPF insurance from 2.5 lakhs to 6 lakhs after the expiry of private sector employee in the small n medium private jobs. About 12 crore farmers owning 2 hectare land would get directdeposit of Rs. 6000 each every year.

It may be recalled that the BJP let NDA government had been quite miser in granting tax reliefs to the government employees in its last five budgets’, but seeing the election round the corner, it wasted no time to make the entire salaried class, pensioners, sr citizens n small entrepreneurs happy by the revolitionery relief in annual income tax exemption limit. This really seems to Prime Minister Narendra Modi’s master stroke say analysts.

In his two tweets the former Finance minister P. Chidambaram has tweeted : (1st tweet) Thank you interim FM for copying the Congress’s declaration that the poor has the first right to the resources of the country. (2nd tweet) It was not an vote on account. It was an account for votes. He termed the government as reckless n unconsititional accusing it of presenting a full budget under the guise of an interim budget/ vote on account which is totally unconstitutional to beget votes in the year of election which are just three months ahead.