New Delhi, Jan 08: The Central government may propose paybacks to middle class taxpayers in the forthcoming final budget of the modi-led Govt- tenure to eye on 2019 general elections. Reports said that the government has already embarked consideration on a package; though, not anything will be declared before meditating on the cost of tax breaks on the exchequer. The benefits may take account of an increase in tax exemption limit and additional exemption under Section 80 C.

Although Finance Minister Arun Jaitley has been a backer of providing more liquidity to the stacks to spend and invest, given the revenue shortfall, he will have to warily monitor government’s account books before declaring additional benefits.

 As per reports of TOI that a section in the government was supporting the re-introduction of long-term capital gains tax on stock market dealings. The tax will be levied on transactions above a certain value. The money might go in welfare schemes. The Bombay Stock Exchange (BSE) reportedly had a conference with finance ministry officials and suggested to impose the tax.

In addition the report said that the tax package pronouncement will be taken after thorough discussion with FM Arun Jaitley. The move will taken in such a way that it doesn’t have an effect on government’s flagship schemes or reduce the revenue stream majorly.

At present, income upto Rs 2.5 lakh is exempted from income tax. Rs 1.5 lakh limit is fixed under Section 80 C. It was reported previously that the government may raise the limit under 80 C to Rs 2 lakh.