Budget 2010: Wishlist from one among the salaried class for Income tax benefits
By Natraj Muthukrishnan on 17 February, 2010, 5:32 pm
I represent the community of the most sincere tax payers in the country, the so called white collared corporates who get their salary only after tax is deducted at source for income tax and those who if they have paid additional tax , have to wait for the next two years to get back the excess tax paid. This post is a wish list which I have from this year’s budget , hoping at least some of it are addressed. To know what gets addressed and what not, we will have to wait till 26th February.
- Increase the slabs
With the proposed Direct Tax code all set to be implemented starting April 2011, it is time we start moving towards that structure from now on. The aam aadmi expects the budget 2010 to raise his living standards. We expect the slab of 10% tax rebate to be increased till at least 5 lakh and the next one till 20% to be fixed at 10 lakh and so on.
- More benefits for the housing loan
As of now, the interest paid towards repayment of a housing loan is exempted from income tax upto a max of 1.5 lakh and the principal contributes towards the total savings under section 80C, the maximum limit for which is 1 lakh. With the real estate market just picking up and with the recent announcement of banks which might cause an increase in the rates of housing loans, the real estate market may fall. To prevent this and to give some benefits to the most sincere tax payers in the country, the limits of benefits from the housing loan should be raised. The interest paid should be taken as such without any upper bracket and the principal repaid should be dealt separately and not under the 1 lakh bracket.
- Tax Exemption Limits
The limit of tax excemtion for savings under section 80 C which includes all LICs, PPFs, and other life insurance policies is currently set at 1 lakh. This should be raised till a 3 lakh in order to give more benefit to those among the salaried class who believe in saving things for the future.
- Others
Other things which can be considered is increasing the limit of exemption allowed for medical reimbursement and leave travel allowance. Perhaps some more soaps can be given to people availing LTA and travelling in Indian Airlines. This way we make two shots out of one arrow. Satisfy the salaried class and promote more people to use Indian Airlines which seems to be a sinking ship with more and more private players offering attractive offers.
These are mere human wishes and human wishes and ambitions know no bounds. Hope at least some of these get addressed. What’s your wish list? Let us know.
pz send latest income tax chart for a salaried person
[...] this, one of the wishes from your friends wishlist has come [...]
Present tax free limit on taxable salary Rs.160000/- should be raised to Rs.300000/- as the price hike in essential comodities and hike in salary due to 6th cpc. It is social justice with the salariried persons in India and relief to their families.
[...] Update 16-Feb 2010: Budget 2010: Wishlist from one among the salaried class for Income tax benefits [...]
[...] View original here: Budget 2010: Wishlist from one among the salaried class for Income … [...]