As the date for the presentation of the Budget has been fixed by the Modi government, it will be interesting to observe the likely concessions offered by the government just after the steep railway fare hike and the jump in sugar prices (June 24). The last government had to be soft due to electoral considerations. Economic realities may force this government to consider harsh decisions.
The Modi government has already dropped ample hints that the budget is going to go the way of the rail fare increase. We should brace ourselves for tough decisions. While the government cannot be faulted for any increase in taxes, as a citizen my appeal to the government would be to tax the rich person more. The signs of affluence one sees in cities show that a larger segment of this population can bear more taxes.
T. Anand Raj,
In the interest of senior citizens and elderly pensioners, the Finance Minister must look into the following: the basic income tax exemption limit needs to be raised to Rs.5 lakh for the salaried class; the reimbursement limit for exemption for medical reimbursement perquisites should be increased to Rs.50,000 from the existing Rs.15,000; Section 80C was again reintroduced in place of Section 88 w.e.f. April 1, 2006. The limit of Rs. 1 lakh of investment under Section 80C was fixed in 2006-07. It needs to be increased to at least Rs.3 lakh to encourage investment in government savings; the cap for automatic TDS for interest on bank deposits, now Rs.10,000 per annum, should be raised to at least Rs.30,000 which will result in increase in deposits in banks; Similarly, the cap for automatic TDS for interest on NBFC deposits, currently Rs.5,000 per annum, should be raised to at least Rs.15,000 as the RBI monitors NBFCs closely.