Budget 2019: Hike income tax exemption limit to Rs 5 lakh, health insurance limit too, says ALANKIT MD Ankit Agarwal

Budget 2019: In a bid to push savings among the private sector employees, tax experts have demanded from the Narendra Modi government to  extend the 80C tax exemption to the tier-2 of the NPS accounts for  the private sector employees as they are doing it for the central government employees. They have also urged from the Modi government to give tax deduction in Equity Linked Saving Schemes (ELSS) be extended to all mutual fund schemes. 

Ankit Agarwal, Managing Director, ALANKIT LTD has this to say about his Budget 2019 expectations, "Doubling the income tax exemption limit to Rs 5 lakh will boost investment levels by common people. Government has already announced that contributions by government employees in the Tier II account of National Pension System (NPS) with a lock in period of three years will be eligible for tax deduction under Section 80C, it would be beneficial if the same is extended to private sector employees as well." 

Turning his attention to another form of investment, Agarwal said, "Tax deduction limit for equity-linked saving schemes (ELSS) is Rs 1.5 lakh; this could be extended to all mutual funds that complete a 3-year lock-in period."

Considering that employees are mostly worried about their health and costly medical intervention, Agarwal wants that insurance for the same should not jump out of their reach. He said, "Currently, the deductible limits for health insurance premiums under Sec 80D is Rs 25,000, this limit could be revised to higher amount and further reduce the GST for health insurance premium."  

Tax deduction to the mutual fund schemes on the lines of ELSS will attract investors to move from equity linked schemes to mutual funds giving them more option for investment in case of lower returns.

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Will Prime Minister Narendra Modi and Finance Minister pay heed to these demands? Budget 2019 day is tomorrow. People will know whether they get relief or not.