As is the case, the common man is expecting some relief on the personal income tax front, as well as a host of other benefits.
Here are a few of his expectations from an ASSOCHAM survey.
Salaried class employees want FM to raise IT exemption limit to Rs 3 lakh from the existing Rs 2 lakh. For women, the tax exemption limit should go up to Rs 3.5 lakh.
The existing tax free limit of Rs. 15,000 should be increased to Rs. 50,000/-, the same also needs to be considered in the Budget.
The limit for transportation allowance was fixed long back and it is time that it is re-visited considering inflation and a hike in petrol/diesel prices. For an employee commuting between the place of work and residence is tax-free to the extent of Rs 800 per month, this should be revised upwards to at least Rs. 3,000 per month.
The deduction limit for payment of interest (on self occupied property) has remained constant at Rs 1,50,000 since 2001. There is an increase in property prices and accordingly the amount of loan. An increase in the exemption limit to Rs 2,50,000 will be a welcome change", reveals the ASSOCHAM survey.
Section 80C of the IT Act provides a deduction of Rs 1,00,000 for certain investments. This provision helps people in making forced savings that helps them in the future.
The common man expects this limit to be increased to Rs 2,00,000 with sub-limit of Rs. 50,000 exclusively for insurance and pension, adds Mr. D S Rawat Secretary General ASSOCHAM.
Many responded at an ASSOCHAM survey that the national pension system (NPS) brought under the EEE (exempt-exempt-exempt) as against EET (exempt-exempt-tax) at present. This means that investors get a tax exemption at all three stages of investment, appreciation and withdrawal.