Saturday, February 16, 2013


on Saturday, February 16, 2013

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.
  1. 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.
  2. Increase 10 % slab up to Rs 6,00,000 from earlier Rs 5,00,000
  3. 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.
  4. 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.
  5. 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.
  6. Increase Medical reimbursement to Rs 30000/- , Children Education and hostel allowance to 750/- per month.
  7. Reduce lock in period for tax saving FDR to 3 years from 5 years.
  8. 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.
  9. 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.
  10. 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

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  1. increase exemption limit to 3 lakh

  2. My expections & suggestions are as under :
    a) 80C including 80CCF should be raised to atleast 3.00 lacs to boost economy & check inflation rate
    b) 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
    c) Leave encashment exemption should be enhanced by linking to inflation index (from the last revision) and in future also

    with regards,

    Rajesh Singla

  3. Tax free interest income of senior citizens if not full to some extent .Many senior citizen has no pension - live on such interest income, value goes down with inflation .

  4. Tax free interest income of senior citizens if not full to some extent .Many senior citizen has no pension - live on such interest income, value of which goes down with inflation .

  5. My suggestion :
    - Medical Reimbursement Exps should increase to 50k.
    - Child Education allowances to 12000 pa min
    - 80C limit should be revised by 2L
    - 80D should be revised to 50k considering the increase in insurance premia

  6. super proposal but ..i think it is not that much eassy

  7. The few teething problems of mismatch of tax etc being mentioned is causing lots of inconvenience to common man.. Also onus is put on citizens to get mismatch rectified and there is no greivance redressal mechanism when banks intentionally flout rules and not act upon discrepancies brought to their notice.. Calls to IT CPC does not help either.. IT dept when it sends notice to citizens it does not send necessary details on how they arrived at the demand.. Calls to IT CPC does not help here either.. The common man is forced to make personal visits to IT office by applying for leave.. Then what is the purpose of digitization.. When does the teething problems with digitization end.. Even after more than 5 years I still see lots of issues with TDS deduction/reflection etc

  8. Simplify tax system by aboloshing all deductions & exemptions. Reduce percentage of tax and charge based on gross income / CTC. E.g. 3% upto 10Lakh CTC; 5% upto 20Lakh CTC; 7% on 20L+ and so on... :-)

  9. good for common man according to inflation which is increasing day to day

  10. Please increase the standard deduction to atleast 5 lakhs as the cost of living is increased in all the aspects, It will be benefited in revenue aspects also, but consider the people who are depending upon their salary in respect of IT Sector as their Income tax will be pre-deducted.

  11. We know that 1.3% tax payers do contribute heftly 63% of tax revenue
    under personal income tax falling in the slab of >Rs.20L tax income
    bracket but 98.7% taxpayers do contribute only 37% of tax revenue
    falling in the remaining slabs,

    Govt, needs to increase the taxpayers as well as to simplyfy the taxation.

    Therefore, Govt. should act in two directions (a) to check the
    undisclosed eligible taxpayers in the highest income-bracket, and (b)
    reduce the tax-rates in remaining slabs to make an increased taxpayer
    base in lower income-brackets as well as (c) to make the returns
    filing compulsory for all PAN Card holders (even with the disclosure
    of ZERO income).
    CMA Ashutosh Kumar Gupta

  12. Min 300000 exemption should be consider

  13. Pl reintroduce Presumptive Tax. many small traders are willing to pay and this is a way to collect Tax from them.

    If big guys take this course now with tech savy I T Deptt. can catch hold of them by the store house of data collected through Annual Return, CIB data ,TDS TCS Returns and other sensitive ways and 26AS

    Survey u/s 133B is still in Statue

  14. Dividend is tax free which is distributed after paying Tax on that which is equal to all investors.
    Mr A an ordinary small investor ,say owning 100 shares pays equal tax like any of the promoters or high net worth Individual (HNI) or entity who holds more share .
    All are paying equal Dividend tax and enjoying tax free dividend.
    While HNI or Promotors earning lakhs / crores tax free income .
    FM is talking about taxing higher income groups .
    High Dividend say more than 1 lakh or so as determined by expert group or the Fin.Ministry,should be brought to higher Divident Tax which be in the line of taxing higher income group

  15. Although it is headed for 'Salaried Person' but there is nothing exclusive for Salaried Person. All the ten (10) items above are for individuals only which includes salaried person. An individual having business income can avail releif of unlimited amount on account of expenditure, part of which may not be correct or may be correct. That may be possible to detect on scrutiny only. If we consider the correct portion, there is no doubt that they are eligible for getting relief on expenditure incurred to earn the profit by simply debit it in its P & L A/c. Where is the scope for Salaried Person. Because they are the genuine tax payer, they are not getting any erelief for earning their salary. There is lot of unavoidable expenses for a salaried person. Where is the relief. Earlier there was Standard Deduction. Why it was withdrawn? Why it will not be re-introduce. Why there will not be some special deduction for salaried person in addition to Standard Deduction, being the genunine tax payer.

    a. chakraborty

  16. PC has always targeted salaried person because salaried person can not evade tax easily and tax collection is easy from salaried peson. PC can not bring black money to books and increase tax base. He has no intentions and is working with failed machinery. Since it is pre election budget he may allow some concession. But my feeling is that he won't allow. We (salaried persons )are not their vote base so I don't think that he will allow any concessions/increase in deductions to salaried person. We should form a forum and decide whom to vote. India wide Collective voting by salaried persons in some party's favour would help us in getting concessions/rationalisation/deductions that we desire and deserve. Unity is strength. That's why congress woos minorities because they give collective and united vote. come on friends, lets see the budget and decide whom to vote in next general elections. We will shape our future ourselves. We will pressurise the government through collective voting to tax us rationally and in turn have a better life. ........Anurag...... Mumbai......

  17. Most of the Senior Citizens are dependent on Bank Interest Income. Most of them are deserted by their kith and kin. Many of them live seperately paying heavy rent and incurring disproportionate sums on Medicines and treatment. India is living now, because of the hard effort of the Senior Citizens. I request the Hon. Finance Minster to increase he exemption limit upto Rs. 5 Lacs. All the Senior Citizens will surely bless the Minister.