The current Budget is a vote of account so expecting any major announcement ahead of the forthcoming general elections seems highly unlikely. But taxpayers expect some populist announcements like increase in the basic exemption & house rent allowance exemption under both regimes. Income Tax structure has remained more or less the same, but the number of tax return filed has gone up significantly. By exempting the lower income group from income tax will reduce the work for the govt. machinery and in turn they can focus on greater compliance in the higher income group. Expecting income tax cuts looks difficult due to the fiscal constraints. Enhancements of limits under Section 80C and 80D is possible due to adjustment for inflation rate. Government also indicate steps being proposed to take the glide path towards 4% fiscal deficit to GDP ratio. From the equity market point of view seems that it will be a non-event.
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