Finance minister will present the Budget for Financial year 2013-14 on 28th February ,2013.There are lot of demands and expectations from the budget from various businessmen , industrialist and economist.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 Income tax exemption limit to 3,00,000(presently it is 2,00,000) .With this tax liability will be reduced by around Rs 10300/- .Similar adjustment should be made in Sr Citizen and very senior citizen slab.This limit should be increased as inflation is increasing day by day and person should be compensate to offset increase in fuel , gas, freight and other essential services and Goods.
- Increase 10 % slab up to Rs 6,00,000 from earlier Rs 5,00,000
- Increase in 80C deduction limit to Rs 1,50,000/- ,it will increase saving, which will provide help Govt in raising funds and increase social security.
- Restore 80CCF deduction for investment in Infrastructure Bonds with revised limit of Rs 30000/-.It will help infrastructure companies to raise money.Interest rate should be increased on these bonds.
- Increase Exemption of Transport allowance from present limit of Rs 800/- to Rs 4000/-.This limit has not been increased since a long period. 6th CPC has increased limits of transport allowance payable to all employees and accordingly higher amount has been paid in PVT sector also.
- Increase Medical reimbursement to Rs 30000/- , Children Education and hostel allowance to 750/- per month.
- Reduce lock in period for tax saving FDR to 3 years from 5 years.
- Enhance the scope of Rajiv gandhi equity saving scheme(section 80CCG) by allowing investment by higher income(income more than 10 lakh) first time investor.
- Increase in deduction for Interest on House loan for self occupied house to Rs 200000/- from earlier Rs 150000/- as housing cost is increasing day by day ,so person have to take higher value house loan to acquire /construct own house.
- Increase in Leave encashment exemption Limit to 6,00,000 from 3,50,000 for non govt employee and further it should be linked to inflation index ,so that limit may be increased automatically as suggested by Rajesh Sngla in comment section