Income Tax exemption Limit to be increased
The working class especially all the central government employees’ expectation over budget 2013 is simply on income tax exemption limit. Because they are the main portion of small tax payers who pay the income tax regularly without any arrears as the compulsory deduction done by their employers.
It is noted that our country’s annual budget is all about the government’s planned revenue and expenditure. But as far as common people are concerned, government has to do something to control the price rice of essential commodities. They expect that the area of food, medicine, housing and education to be addressed properly in this budget 2013 to improve their living condition.
But it will be a good news for central government employees if the income tax exemption limit is increased. The current exemption limit for men is 2 lakhs. None of the working class feels happy with it since it is very low comparing to the inflation continued to be in high. So it is expected that the Government likely to increase this limit to Rs. 3 lakhs for men assesses and Rs. 3.5 lakhs for women assesses, in order to increase the net salary in the hands of taxpayers. Additionally, allowances like transportation allowances , education allowance (Rs. 100 per month per child upto 2 children), hostel allowance should also be revised upwards to reflect current price levels.
Mainly the Reimbursement limit on medical expenses and Investment limit under Sec 80C should also be increased .