Govt intends to remove all income tax exemptions in the long run: FM

After slashing income tax rates for individuals on condition that they will give up exemptions and deductions, Finance Minister Nirmala Sitharaman on Saturday said the government intends to remove all I-T exemptions in the long run.

Speaking at a press conference after presenting her second budget in the Lok Sabha, she said income tax cuts follow reduction in corporate tax rates in September last year.

The minister said additional capital will be provided to public sector banks as and when required.

Her budget speech did not provide for any specific number for additional capital.

The finance minister said improvement in revenue generation gives hopes of lowering fiscal deficit to 3.5 per cent of GDP in the next fiscal from 3.8 per cent in the current.

Disinvestment Secretary T K Pandey said big ticket stake sale will happen in the next few months and that he was confident of achieving the Rs 2.10 lakh crore target set for the next financial year.

He said an expression of interest (EoI) for sale of government stake in Bharat Petroleum Corp Ltd (BPCL) will be issued shortly.

The Cabinet had approved sale of government stake in BPCL in November last year.