Budget may hike I-T exemption threshold, levy 40% tax on income over Rs 10 crore: KPMG survey

The upcoming Budget may hike the tax exemption limit for individuals from the current Rs 2.5 lakh and introduce a higher 40 percent tax on those with income above Rs 10 crore, a KPMG survey said.

The pre-Budget survey 2019-20 conducted by KPMG (India) included responses from 226 respondents spanning across industries.

A whopping 74 percent of the respondents felt that exemption threshold of personal income tax would be hiked from Rs 2.5 lakh, while 58 percent said the government would consider a new 40 percent tax slab for the 'super rich' -- those earning above Rs 10 crore.

While only 13 percent of respondents feel that inheritance tax would be brought back, 10 percent felt there are chances of re-introduction of wealth tax/estate duty, the survey said. 

To boost housing demand, 65 percent of respondents felt the Budget may increase the tax deduction limit for interest on housing loan for self-occupied properties from the present Rs 2 lakh.

Also, 51 percent said the government could carve out deduction for repayment of housing loan principal from the existing overall deduction limit of Rs 1.5 lakh under Section 80C.

However, 53 percent of the respondents do not expect Finance Minister Nirmala Sitharaman to make any major direct tax amendments in the Budget to be unveiled on July 5.