It’s Budget time again and expectations of the common man are high even as the P Chidambaram, the Finance Minister of India, tries to deliver to the expectations of the ‘aam admi’ (the common people) in the annual Union Budget.
The union budget for the FY 2013-14 will be presented before the Parliament on last week of Feb. 2013. Budget 2013-14 can be termed as the budget of aspirations since this is the last budget that the ruling UPA-2 government is going to announce. The number of amendments expected and predicted by analysts in the Union Budget for 2013- 2014. Expectations of the common man are rising from this years Union Budget. What will happen eventually will unfold on the day of budget !
Here is a sneak peek into the common man’sexpectations from the union budget 2013-14. Liberalize tax slabs
The basic slab for income tax was raised to Rs 2 lakhs from the current Rs. 1.8 lakhs that led to a savings of Rs 2,000 for all taxpayers earning below Rs 5 lakh per annum. The salaried class is expecting the basic tax slab to be increased from the existing 2 lakh to 3 lakh per annum. senior citizens are also expecting the existing limit be hiked from the current 2,50,000 limit to rupees 4 lakh per year. source: moneycontrol.com, yahoo!indiafinance, economictimes.com
HRA(House Rent Allowance )Current -House rent paid minus 10 % of salary -50% of salary in case of rented house situated in metro city. -40 % of salary ,if rented house is situated in any other placesExpectation –it is expected to be changed this year Transport AllowanceCurrent- exempted upto Rs.800 per month max.Expectation - should be raised to minimum Rs 2000.
Children Education allowanceCurrent - Rs 100 per month per child up to max of 2 child is exemptedExpectation - should be raised to minimum Rs 1000. Children hostel allowanceCurrent - Rs 300 per month per child up to maximum of two child is exemptedExpectation - should be raised to minimum Rs 3000 Source: moneycontrol.com yahoo!india finance, economictimes.com
Considering the rising prices of real estate, the common man’s dream home still remains a dream The government may allow deduction for interest during the construction period instead of allowing it only after the construction is complete. The income tax exemption on payment of interest on housing loans may be raised from current Rs 1.5 lakh to Rs 3 lakh for a self-occupied property. source: moneycontrol.com, yahoo!india finance, economictimes.com
In current year up to rupees 10,000 will not be taxable on interest of bank savings account . Here, a thought can be given to increasing the interest limit on such saving accounts to minimum Rs.25,000. source: moneycontrol.com yahoo!india finance, economictimes.com
Section 80C of the Income-tax Act, 1961 allows deduction of up to Rs 100,000 for investments in a host of specified schemes like mutual funds, fixed deposits, provident fund, etc It may be expected that this section brings within its ambit many future benefits, the limit may be raised to Rs 200,000. source: moneycontrol..com yahoo!india finance, economictimes.com
Health insurance premium paid by an individual can be claimed as a deduction up to Rs 15,000 if the insurance is for himself, spouse or dependant children. Expectations :- Increase the limit of Rs 15,000 to Rs 20,000 for health insurance premium paid for self, spouse and dependents parents; -Increase the limit for senior citizens to Rs 25,000, considering that healthcare costs for senior citizens are comparatively more source: moneycontrol.com, yahoo!india finance, economictimes.com
The union government has hiked the cap of subsidised cylinders from 9 per household per year. Homemakers feel that this is too less to run the household and would like it to be hiked to atleast 12 cylinders per household per year. sources: moneycontrol.com, yahoo!india finance, economictimes.com