Friends we are very known the Financial Year 2013-14 budget will presented by Finance Minister of Union Territories on 28th Feb., 2013. Every Economist, Businessman, Industrialist and Taxpayee specially Salaried Employee more expected and demanded from this budget-2013. This factor is very specially and all are most important part regarding Tax Revenue, but apart from these the Common Man is want not more or less interested in Direct Tax Proposal of Government. All common man and such taxpayee whose Income not more than 5 Lacks specially awaiting Direct Tax Proposal. All taxpayee of India and Common Man wants from this year Budger-2013, which are as under:
Tax Exemption Limit:
Tax Exemption Limit:
- The exemption Income Tax limit is expected to be increased from Rs 2,00,000 to Rs 3,00,000. It means the tax liability will be reduced around Rs 10300/-. As well as it should effect in Sr. Citizen or Ver Sr. Citizen Tax Salab. This will increase the disposable income of the salaried individual and would be a welcome change.
- Further taxapyee wants the Tax Slab of 10 % should be increases from Rs 5,00,000 to Rs 6,00,000. And highest Tax Rate of 30% should be enhanced from Rs. 10,00,000/- to Rs. 12,00,000/-.
U/s. 80C Deduction Limit:
- This budget may increase deduction limit under section 80C from Rs. 1,00,000/- to Rs. 1.50.000/-, it will increase Savings and deposit fund to help Govenemrnt and increase social security.
Restore u/s. 80CCF :
- U/s. 80CCF may restore again in Fin. Year 2013-14 for investors to increase the Fund and it will help Infrastructure Companies as well as it will increase Interest Rate as Infrastructure Bond with revised limit of Rs. 30,000/-.
Transport Allowance:
- The Exemption of Transport Allowance limit has not increased sin long and due to more inflation and rising in fuel cost/prices it is require to increase Exemption of Transport allowance from Rs. 800 to Rs. 4,000/-. Because 6th Pay Commission had increased the limit of Transport Allocance to all employee as well as Private sector also pay higher amount to Employee.
Medical Reimbursement and Children Education Allowance :
- This budget may expect to increase Medical Reimbursement up to 30,000/- (Current limit is upto Rs. 15,000/-). The Children Education allowance may be raised by Rs. 750/- per month for each child (not more 2 Children).
Locking period of Tax Saving FDR:
- Current lock period for Tax saving FDR is 5 years. It may reduce form 5 years to 3 years only.
U/s. 80CCG:
- The Rajiv Gandhi Equity Saving Scheme (RGESS) deduction u/s. 80CCG may enhance for those Taxpayee whose Income more than Rs. 10,00,000/- first time Investor.
Deduction of interest of repayment on House Property Loan:
- The deduction for Interest on House Loan may be increased from Rs. 1,50,000/- to Rs. 2,00,000/- becasue of high cost of Real Estate sector and higher cost of constructions.
Leave encasement exemption Limit:
- On Leave Encasement Exemption limit may be increase from Rs. 3,50,000/- to 5,00,000/- for all Employee whether it is Government Employee or Non-Govt. Employee.
House Rent Allowance (HRA) exemption:
- In this regard due to higher construction cost many house property holders increases House rent and it is difficult to pay by Employee. So, considering the increase in rental amounts, the exemption allowed under section 10 (13A) of the Act could be increased by the Government.
Under the current tax laws, the exemption is limited to the least of the following -
- Actual HRA received
- Rent paid in excess of 10% of salary
- 50% of salary or 60% of salary (in case of metros)
The salaried class will take benefit if the Government re-looks at the above formula which provides little benefit to the salaried class who pays rent.
- Actual HRA received
- Rent paid in excess of 10% of salary
- 50% of salary or 60% of salary (in case of metros)
The salaried class will take benefit if the Government re-looks at the above formula which provides little benefit to the salaried class who pays rent.
