Budget 2015 will be second budget of new government. Last year few expectations of salaried people were addressed in budget. This year expectation from upcoming Union Budget 2015 is very high. It is expected that government will propose investment friendly budget which will lead to economic growth.
Budget 2105 is nearby and I am herewith – Wish list of Salaried People from Budget 2015:
Budget 2015 – Wish List
Tax Benefit
All salaried people are expecting relaxation in tax this year. Current Tax limit is 2.5 Lac. It is expected that tax limit should be enhanced to 3 Lac.
Income group between 3 Lac to 6 Lac can be taxed at 10%; between 6 Lac to 12 Lac taxes can be 20% and above 12 Lac tax can be 30%.
Increase in 80C Investment limit
Current 80 C investment limit is 1.5 Lac. This limit was enhanced last year from 1 Lac. Going further 80C investment limit should be enhanced to at least 2 Lac. We have multiple investment options under 80C but investment limit is very low.
Education Expense Limit
Two types of dedications are allowed under education expense category. First deduction is on the tuition fees paid for depended children. This deduction is under 80C limit currently 1.5 Lac. As education expense is sky rocketing, it is expected that separate deduction limit of 50,000 Rs/- should be allowed for education expense.
Second type of deduction is for interest payment on education loan. One can deduct entire interest amount from your taxable income. This deduction is under 80E. Apart from interest payment principal payment should be allowed for deduction under this category.
Medical Expense Reimbursement
As per current Income Tax rules tax exemption up to 15,000 Rs/- is allowed for you and your family members towards medical expenses. This medical expense reimbursement should be supported by prescription and medical bills.
Looking at increasing medical expense salaried people are expecting that government should double current limit. Exemption up to 30,000 Rs/- per annum must be allowed towards medical expenses.
Tax on Interest
Under section 80TTA Interest earned on saving bank account or fixed deposits to the extent of 10,000 Rs/- (per annum) is tax-free.
To encourage investments by middle class salaried people it is expected that this limit should be enhanced to 25,000 Rs/-
Equity Investment Benefit
Earlier RGESS was introduced to boost investment in equity but this scheme was not successful as it was for first time equity investor.
Going ahead government should bring equity investment scheme for salaried people. New section must be introduced for investment in equity. Up to 50,000 Rs/- tax-free investment must be allowed under this scheme. This will increase retail investment in stock market.
Skill Enhancement Expense
Businessman gets advantage of deducting office running expense from income. No such deduction is allowed to salaried people who pay regular taxes.
Today it is necessary to enhance skills and specialization for every employee. In order to enhance skill one need to subscribe to magazines, journals or need to undergo training or certification. All these expenses as per me are office running expense of salaried people. I propose such expense should be deducted from income at par.
Home loan Interest deduction
Current income tax law says that maximum exemption limit of 200,000 Rs/- is allowed towards interest payment on home loan. This limit was enhanced last year only.
Although it was enhanced last year looking at increasing property rates for common man it is very difficult to purchase house without home loan. Looking at current circumstances this deduction limit should be increased to at least 300,000 Rs/- per annum.
At last I just want to say at time of election when politicians requires vote they listen to every demand of people. But when time comes fulfilling it in budget, they simply refuse demand of common man by giving multiple excuse like fiscal deficit, economy etc.
Hope this year in Budget 2015 at least few demands mentioned above will be fulfilled by government.
If you are agree on suggestion given above just provide your agreement by sharing this post on facebook and Twitter.
ARUN
Limit for no deduction of tax on Interest income should be increased from Rs 10000/- to Rs 20000/-
Neetu
Hi Raviraj,
This is Neetu. My current salary is 10000 p.m. I get my salary in cash every month. My annual salary is 120000. So far there has not been any kind of deduction from our salary as we we are offrole employees & we used to sign on vouchers at the time of payment not even as the ‘SALARY for JANUARY” .Now my company is asking to deduct some amount from our salary like Rs.1500 p.m. out of 10,000 p.m. Is this deduction possible & said we would require to deposit one ITR form at the end of financial year & the whole deducted amount of the year will be deposited in our a/c. I could not see any valid reason for the same.Please suggest as i dont want to get this amount deducted from my salary.
Raviraj Parekh
Neetu,
If salary is not above taxable limit how TDS can be deducted.Please ask valid reason this deducted amount will be called what? It is not legally allowed.