Budget 2020: Change in Income Tax Slab? Financial Expert Answers

Budget 2020: Personal financial expert Gaurav Mashruwala answers how one can lessen the burden of taxes.

Personal financial expert Gaurav Mashruwala.

(Photo: Altered by The Quint)

Union Budget 2020 is soon going to be presented and experts are analysing whether this Budget will leave you happy or sad.

For a common man, the big question is – Will there be a change in the income tax slab?

Personal financial expert Gaurav Mashruwala answers how one can lessen the burden of taxes.

“Whether there will be a change in personal income tax is not known yet. Till Rs 5 lakh there is no tax anyway. Apart from that, the lowest bracket that’s there that’s for 5% only. So there will probably not be much change in the slab but some tweaking here and there might be there so that people like it and in a way, they save more money.”

Gaurav Mashruwala

Where Should You Invest to Save Taxes?

There is no specific instrument because everyone has different needs. Our Income Tax Act is made so well that there are tax exemptions for all our needs.

Mashruwala advises, “If you take a house loan there are benefits in that. Whether you pay rent, have a life insurance or you pay premiums for health insurance, there are benefits for everything. Make a list of what your needs are and see where you get exempted from tax and invest there.”

Buy a House to Save Taxes?

Mashruwala suggests that if you need a house to stay whether you get an exemption from tax or not, buy it.

He says, “You shouldn't ever delay it. Because if we're paying rent somewhere, it's better to just buy our own house.”

Expectations From Budget 2020

The housing sector needs a push and people want houses in any case. The deductions that people get in interest rates need to be increased. It's been a while that there has been a change in that. In the housing sector, if there is a boost there'll consequently be boosts in several sectors which is beneficial for the economy.

In the healthcare sector there are always increases and if it is there this year as well then that'll be very good. Because people are spending a lot on healthcare and insurance premiums. New diseases are coming up, and treatment costs a lot. So if someone gets admitted to a government hospital or nursing home that too without a cash amount then they should get benefits.

For those with a monthly saving of Rs 10,000, Mashruwala recommends saving three times the monthly expense for emergencies. Even if you cannot do it at one go, you should slowly achieve that first and then move on to other areas of savings, as per your needs.