Updated on 16 March 2012:
Expectations Of Salaried People From Indian Budget 2012-13:
- Tax Exemption Limit :- The exemption limit is expected to be raised from Rs 1,80,000 to Rs 3,00,000.
- Income Tax Slab: The income tax slab of 30% which is applicable on income above Rs 8 lakhs is expected to be raised to Rs 10 lacks.
- Income Tax Deduction Under Section 80CCF :- The deduction limit u/s 80CCF on investment into infrastructure bonds is expected to raised from Rs 20,000. (This deduction is not available under proposed DTC).
- Income Tax Deductions Under Section 24 For Interest Payment Under The Head Income From House Property :- The deduction limit on payment of interest of home loan towards purchase /construction of a self occupied house property is expected to be raised from Rs 1.5 lakhs.
- Deemed Let Out House Property Provision Should Be Abolished :- In case of more than one self occupied house property with an individual, tax law considers one property as self occupied and levies tax on the second property based on deemed rental. Taxation on deemed let out property (i.e second property) in case of more than one self occupied house property is expected to be abolished.
- Income Tax Deduction Under Section 80C :- The deduction limit available under section 80C is expected to be raised from Rs 1 lakhs.
- Exemption On Transport Allowance :- The exemption limit on travelling allowance is expected to be raised from Rs 800.
- Exemption On Children Education Allowance :- The exemption limit on children education allowance is expected to be raised From Rs 100 per month per child for maximum 2 children to actual expenses.
- Exemption On House Rent Allowance (HRA) :-The exemption under 10 (13A) is expected to be increased which is currently limited to the least of the following:-
- Actual HRA received
- Rent paid in excess of 10% of salary
- 40% of salary or 50% of salary (in case of metros)
- Reimbursement Of Medical Expenses :- The exemption limit on medical expenses should be raised from Rs 15000. The DTC has proposed the limit to be increased to Rs 50,000.
- Restoration Of Standard Deduction :- Standard deduction of 25000 which was available to salaried person u/s 16(i) is expected to be restored and at least increased to Rs 50,000.
Expectations Of Investors From Indian Union Budget 2012-13
- Abolition Of Security Transaction Tax :- Security transaction tax i.e tax on every purchase or sale of securities listed on the Indian stock exchange is excepted to be reduced or removed. Currently, STT is levied @0.125% on both the buyer and the seller of equities on the stock exchange.
Expectations Of Housewives From Union Budget 2012-13:
- Reduce Tax Rates On Essential Household Commodities like LPG cylinders.
Expectations Of Self Employed From Union Budget 2012-13:
- The deduction for rented house/workplace is expected to rise form Rs 24000 per year.
Expectations Of Students From Indian Union Budget 2012-13:
- Reasonable Interest Rates On Student Loan :- It is expected that student loans will become more affordable for students.
Expectations Of NRI’s From Indian Union Budget 2012-13:
- Reduce Taxing In Tax Deducted At Source (TDS) :- There should be some exemption limit on the interest income earned from investment instruments like corporate deposits and bonds.
- Permit NRI’s To Invest In corporate bonds and infrastructure bonds :- This budget may allow NRI’s to directly invest in corporate and infrastructure bonds on Indian companies.
- Increase Wealth Tax Exemption :- Wealth tax exemption limit is expected to be raised form Rs 30 lakh to 1 crore.