BANGALORE: With the budget around the corner, all eyes are on the new Indian government as the common-man expects the team to unveil measures to curb inflation, create jobs, speed up infrastructure projects and create an environment that will boost the economy of the country. Amidst all these, government is likely to ease the tax burden on the middle class masses by exempting income tax limit by 1 lakh, reports Business Today.

This means it will oblige a higher tax on the super rich in its first Budget to be presented by Union finance minister Arun Jaitley in the next month.

As per the sources, the government thinks that the throwaway income of the middle class has come down due to constant inflation and as such there is a strong move for some tax relief provision.

Tax expert Subhash Lakhotia said, "The government should provide substantial relief to tax payers as disposable incomes have gone down every month due to rising prices," reports BT.

Mahambare of CRISIL Research exclaimed, "Ultimately the government should work towards increasing people's income. A manufacturing push is needed to create more jobs and ensure greater incomes of people," reports ET.

The government can either reduce costs or increase revenue in order to get its fiscal house in order. There are a very small percentage of people paying taxes in India. The government will have to work to broaden the tax base," Nitin Jain, CEO Capital Markets at Edelweiss added.

All this could probably become one of the landmark reforms by the Modi government and whether the famous connotation with reference to Narendra Modi- “achhe din aane wale hai” holds true.

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