The Union Budget 2016 will be released by Finance Minister Arun Jaitley on 29th Feb, 2016. This will be third budget of BJP lead government. Many people are still expecting good days. Only time will reveal that expectation of these people will be fulfilled by Union Budget 2016 or not. In expectation of Acche Din here is Union Budget 2016 – Expectation of Common Man.
Union Budget 2016 – Expectation of Common Man
Expectation of Salaried People
Salaried people always see budget from tax saving perspective. Any new enhancement in tax bracket helps them to save good tax amount. Expectations of Salaried people from Union Budget are given below.
Increase in 80 C Limit
Currently, an individual gets the deduction of 1.5 Lac under section 80C of the Income tax.The section 80C investment includes PPF, ELSS, Tax saving FD, Home loan principal, Insurance premium, Sukanya Samriddhi Scheme etc. You can also include expense incurred like tuition fees under this section. The limit of this section was revised 2 years back. Time has came to relook in this limit. Salaried taxpayers expect this limit to be raised to say Rs. 200,000 per annum.
Tax Limit enhancement No tax up to 5 Lac
The Government should enhance personal income tax exemption limit in budget to Rs 5 lakh from Rs 2.5 lakh for all the individual taxpayers.
Revision in the income tax exemption limit is pressing need and prime expectation of a common-man this was even pointed out by 87% respondents in ASSOCHAM Aam Aadmi survey.
Extra Deduction of Education Expense
As of now two types of deductions are available for education expense. First deduction is on the tuition fees paid for the education of dependent children. This deduction is under limit of 80C. Second deduction is for the interest on education loans.An extra deduction of Rs 50,000 per annum towards education expense will help all salaried people to reduce tax burden.
Reimbursement of Medical Expenditure
The tax exemption limit on medical expenses reimbursed by the employer on treatment of employees or family members is 15000 Rs per year. This limit was set 17 years back in 1998. It is expected that government should revise this limit and give tax exemption up Rs. 50,000 for medical reimbursement.
Deduction for interest on housing loan
Property price is sky rocketing. A common man can not imagine purchasing own property without taking home loan. As per current Income tax law maximum Rs. 1,50,000 interest is exempted from taxable income towards interest on loan taken for acquisition/construction of self‐occupied house property. It is expected that this limit should be enhanced to Rs.3,00,000 per annum in Union budget 2016.
Expectation of Startup
Simplified Tax & Ease of Doing Business
Government should simplify tax structure for startups and they should help them to promote innovation and new ideas. Recently PM Modi has announced three years of tax exemption for the startup under startup India plan, however apart from tax benefits there is pressing need to simplify or remove, various other non-value adding activities like service tax returns, TDS returns, multiple compliance documents etc. Hope some visible action shall be taken by government for this in Union Budget 2016.
Ease of Getting Loan
Getting Loan for new business is very difficult today. The government has introduced Mudra Bank for getting business loan, however to get loan from Mudra Bank is not child’s play. You need multiple documents to get loan from Mudra Bank.
Apart from above we all expect government to control the inflation. It is known fact that government has failed in controlling inflation. Inflation is big enemy of common man today. The government should take measures to control the inflation in Union Budget 2016.
At last I just want to say that at the time of election when politicians requires vote they listen to every demand of people.But when time comes for Union Budget they simply refuse our demand by giving multiple excuse like fiscal deficit, economy etc.
Hope this year government will do something in Union Budget 2016 for common man who is still waiting for Acche Din. Do you think Achhe din aane waale hain?
What is your expectation from Union Budget 2016? Do share your views.