Monday, February 18, 2013

Tax Expectations by Salaried people from Budget 2013

As we all know that the Budget is coming soon and we have a lot of expectation from our Finance Minister P Chidambaram. All of us want to get the Income Tax to increase the limit or reduce the percentage levied on the amount.

The Survey was conducted by Associated Chambers of Commerce and Industry (Assocham), where 2500 employee from different sectors had participated and had expressed their ideas in regards to the budget. The survey was conducted in all major cities including Delhi-NCR, Mumbai, Kolkata, Chennai, Bangalore, Ahmedabad, Hyderabad, Pune and Chandigarh.

Here are some things where the citizen of India would like to see during Budget:

Increase in Tax exemption limit: Currently the tax exemption limit for the salaried person is 2 lakhs. However after the survey conducted by Assocham they say that the bracket should be increased from 2 lakhs to 3 lakhs.

Medical and Educational allowances: The Survey was not only limited to the Exemption limit but was also looking for the deductions if the people want any. Many people demand to increase in deductions on Medical as well as on Educational allowances.

Tax free Income: Approximately 90% of the respondent said that the slab of tax free income has not been raised in line with rise in Inflation. Assocham said that the exemption limit of Rs.200,000 should be raised to at least Rs.300,000 and for women going up to Rs.350,000.

Healthcare Costs: Nearly 89% of the people who participated in the survey said that with the increase in health care costs the tax free limit should be raised from Rs.15,000 to Rs.50,000.

Transportation Tax: The Employer had granted the employee Rs.800 per month as transportation allowance for commuting between the place of work and residence. This limit was fixed from past 10 years and was changed. Majority of the respondent expects this amount to be revised and increased from Rs.800 per month to Rs.3000 per month.

Image source: http://www.cafirmrkj.com/blog/wp-content/uploads/2013/01/Budget-2013.jpg

1 comment :

  1. a Common Tax Rate may apply, like 10% on Gross Salary, Instead of slabs / Rebate etc.