The first budget of the Modi government's third term will be presented on July 23. This term's budget is expected to focus on provisions for the common man while aiming for developmental targets. The government is showing sensitivity towards the poor, and the lower and middle classes, with potential relief on income tax, home loans, and other issues. Prime Minister Narendra Modi recently met with the nation's top economists and experts to discuss the budget, according to sources.
Finance Minister Nirmala Sitharaman was also present at the meeting, which included Union Minister Rao Inderjit Singh, Chief Economic Advisor V.K. Nageswaran, economist Surjit Bhalla, Ashok Gulati, banker K.V. Kamath, and other experts.
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Regarding income taxes, there may be a proposal to increase the basic income tax exemption limit from Rs 3 lakh to Rs 5 lakh. The income tax rate for people with an annual income of Rs 10 lakh is also under consideration. Additionally, changes to concessions under Section 80C are being discussed. Sources indicate that the government is planning to further increase the exemption for house rent allowance.
Economic reforms are essential to attract maximum investment, as mentioned by President Droupadi Murmu in her address. The government aims to boost growth rates and create employment opportunities by drawing in more investments. To achieve this, Prime Minister Modi sought insights from experts on the areas needing improvement.