Thursday, July 10, 2014

Union Budget 2014 – What is there for me

Arun Jaitley has presented his maiden budget today. There were so many announcements, statistics, plans, changes,... which I don’t and don’t want to understand . All I noticed was, what is there for me , for a normal salaried individual. 

There is some good news (not good enough though !)

1. Personal income tax exemption limit raised to Rs 2.5 Lakhs
There is no change in the tax rates, only the no-tax slab has been updated. Now the first 2.5 lakh is non-taxable.

2.Tax exemption limit under 80C raised to Rs 1.5 lakh
Presently the investments and expenditures up to a combined limit of Rs 1 lakh get exemptions under Sections 80C, 80CC and 80CCC of the Income-Tax Act., which is increased to 1.5 Lakh.

3.Housing loan interest exemption increased to Rs.2 lakhs 
This is something reasonable. Deduction limit on interest on loan for self-occupied house raised to Rs 2 lakh from Rs 1.5 lakh.

Happy that there’s a little relief. But it’s just not sufficient for most of salaried people who are paying Income tax through the nose.

An unregistered real estate broker makes many lakhs in an year , but has never been covered under income tax. A road side merchant (who sells just tea, Cigarette and some snack, in front of my office) makes more money than me, After all his bribe to the local rowdies /police/politicians…etc, still he’s able to make out 200-300% profit on his business, but has never paid income tax in his life!

How government is going to regularize these things. It’s always the poor salaried class has to tolerate the burden :(

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