Top 4 Expectations Of The Salaried Class From FM Jaitley’s Union Budget 2017-18
Union Budget 2017-18 :
Move up minimum limit for taxable income
Taking into account the increase in expenditure of living, the government must increase the current basic exemption limit of 2.5 lakh to Rs. 3 lakh. After the minimum limit gets increased, it will not only reward the taxpayers but also the youth salaried employees who are starting out as recruits.
Amendment in tax slabs
Changing the tax slabs will be a great relaxation for the salaried class. Currently, 10 per cent tax is charged on annual income of Rs 2.5 lakh to Rs 5 lakh, 20 per cent on Rs 5 lakh to Rs 10 lakh and 30 per cent on income more than Rs 10 lakh. The first two slabs can be broadened or taxed at a comparatively lower rate.
Raise exemption limit on allowances
The salaried employees are entitled to exemption from tax on quite a few allowances/benefits provided by the employer such as conveyance, children’s education, medical reimbursement, house rent and leave travel. The limits for these allowances were fixed many years ago and so they need to be revised considering the inflation.
Increase deduction under Section 80C
At present, deduction under Section 80C of the Income-tax Act is permissible from Rs 150,000 to Rs 300,000. If Finance Minister Arun Jaitley decides to increase the limit, he can surely enhance household savings which can eventually get invested in power growth.
Expectations are huge from Union Budget 2017-18, but the Finance Minister has to face a tough challenge ahead – upholding the fiscal strength of the economy while fulfilling the expectations of the people of the country.
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