income tax budget

The government introduced the tax in order to discourage cash transactions and move towards a cash-less economy.

Currently, those with income of upto Rs 2.5 lakh are exempted from tax net. However, this limit may be raised to 3 lakh in the upcoming Budget. The proposed tax will put at least Rs 2,500 more money in the hands of taxpayers, thereby giving an indirect impetus to the economy.