Common man's expectations from the Budget
Liberalize tax
slabs
As the
economy is emerging out of recession and inflation continuing to be on the
higher side, the common man expects that slab benefits should be further
liberalized. At present a male
taxpayer pays tax on income exceeding Rs 160,000 per annum. It would be a
welcome step if this limit is increased to Rs 200,000. Corresponding limits for women may be
increased from Rs 190,000 to Rs 230,000 and for senior citizens from Rs 240,000
to Rs 300,000.
Increase
exemption limit of various allowances
The last time
when the exemption limits of allowances like children education (Rs100 pm),
hostel expenditure (Rs 300 pm) and transport allowance (Rs 800 pm) were revised
was in 1997. Considering the current inflation and the cost of living, the
exemptions can be raised to Rs 1,000 pm for children education, Rs 3,000 pm for
hostel expenditure and Rs 2,500 pm for transport allowance.
Raise housing
loan exemption limits
Considering the
rising prices of real estate, the common man’s dream home still remains a
dream. The government may consider the following: Allow deduction for interest during
the construction period instead of allowing it only after the construction is
complete. Raise the exemption limit for interest payment on home
loan to Rs 300,000 from the current level of Rs 150,000 for a self-occupied
property.
Increase in
Section 80C limit
Section 80C of
the Income-tax Act, 1961 allows deduction of up to Rs 100,000 for investments
in a host of specified schemes like mutual funds, fixed deposits, provident
fund, etc. Given
that this section brings within its ambit many future benefits, the limit may
be raised to Rs 200,000.
Health
insurance premium
Health insurance
premium paid by an individual can be claimed as a deduction up to Rs 15,000 if
the insurance is for himself, spouse or dependant children. Increase the limit of Rs 15,000 to
Rs 20,000 for health insurance premium paid for self, spouse and dependents
parents; Increase the limit for senior citizens to Rs 25,000,
considering that healthcare costs for senior citizens are
Deduction in
respect of medical treatment for specific diseases
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