What Salaried Persons are expecting from Budget 2013?
With Budget 2013 less than a month away, discussion and debate have reached on high fever. The Budget is expected to have something for all segments- be it the small Investor, the Corporate sector or other industry segments. These all are important but common man is more or less interested in Direct tax proposal. Direct Tax proposals are always keenly awaited by all common persons. We also have expectation and wish list from Finance minister which is given below. You can also contribute your wish list in comment section.
Raise the Caps
|Tax Benefits||Current Amount||ITU Suggests|
|Deduction Under 80C||1 Lakh PA||3 Lakh PA|
|Transport Allowance||800 PM||3000 PM|
|Education Allowance||100 PM/Child||2000 PM/Child|
|Hostel Allowance||300 PM/Child||2000 PM/Child|
|Medical Reimbursement||15000 PA||50000 PA|
|Health Insurance Premium||15000 PA||30000 PA|
|Deductions on Interest on Home Loan||1.5 Lakh PA||3 Lakh PA|
|Leave Encashment||3.5 Lak||5 Lakh|
Apart from above there are few suggestions which should be incorporated to suffice the upcoming budget 2013:
- Raise Income tax exemption limit to Rs. 3,00,000 in case of Individual (currently 2,00,000). With this tax liability will be reduced by around Rs 10,300/-. Similar adjustment should be made in Senior Citizen and Very senior citizen slab.
- Tax free interest income of senior citizens if not full to some extent. Many senior citizens have no pension, they live on such interest income, and value goes down with inflation.
- Restore 80CCF deduction for investment in Infrastructure Bonds with revised limit of maximum benefit upto Rs 30,000/-. It will help infrastructure companies to raise money. Interest rate should be increased on these bonds.
- Increase House Rent Allowance.
- Gratuity should be calculated as per salary of employee and there should not be any cap on gratuity payable however tax exemption may be continued as per present practice.
- Leave encashment exemption should be enhanced by linking to inflation index (from the last revision) and in future also.
- Restore MAT from 18.5 percent to 15% which will entice foreign investors to invest in India.
- Reduce lock in period for tax saving FDR to 3 years from 5 years.
- Enhance the threshold limit of Rajiv Gandhi Equity Saving scheme (section 80CCG) for first time investors, which is currently Rs. 10 lakhs.