What salaried persons are expecting from budget 2013?

What Salaried Persons are expecting from Budget 2013?

With Budget 2013 less than a month away, discussion and debate have reached on high fever. The Budget is expected to have something for all segments- be it the small Investor, the Corporate sector or other industry segments. These all are important but common man is more or less interested in Direct tax proposal. Direct Tax proposals are always keenly awaited by all common persons. We also have expectation and wish list from Finance minister which is given below. You can also contribute your wish list in comment section.

Raise the Caps

Tax Benefits

Current Amount

ITU Suggests

Deduction Under 80C

1 Lakh PA

3 Lakh PA

Transport Allowance

800 PM

3000 PM

Education Allowance

100 PM/Child

2000 PM/Child

Hostel Allowance

300 PM/Child

2000 PM/Child

Medical Reimbursement

15000 PA

50000 PA

Health Insurance Premium

15000 PA

30000 PA

Deductions on Interest on Home Loan

1.5 Lakh PA

3 Lakh PA

Leave Encashment

3.5 Lak

5 Lakh

Apart from above there are few suggestions which should be incorporated to suffice the upcoming budget 2013:

  • Raise Income tax exemption limit to Rs. 3,00,000 in case of Individual (currently 2,00,000). With this tax liability will be reduced by around Rs 10,300/-. Similar adjustment should be made in Senior Citizen and Very senior citizen slab.
  • Tax free interest income of senior citizens if not full to some extent. Many senior citizens have no pension, they live on such interest income, and value goes down with inflation.
  • Restore 80CCF deduction for investment in Infrastructure Bonds with revised limit of maximum benefit upto Rs 30,000/-. It will help infrastructure companies to raise money. Interest rate should be increased on these bonds.
  • Increase House Rent Allowance.
  • Gratuity should be calculated as per salary of employee and there should not be any cap on gratuity payable however tax exemption may be continued as per present practice.
  • Leave encashment exemption should be enhanced by linking to inflation index (from the last revision) and in future also.
  • Restore MAT from 18.5 percent to 15% which will entice foreign investors to invest in India.
  • Reduce lock in period for tax saving FDR to 3 years from 5 years.
  • Enhance the threshold limit of Rajiv Gandhi Equity Saving scheme (section 80CCG) for first time investors, which is currently Rs. 1 lakhs.
Replies (1)

 

Very valid and genuine suggestions.

One can also get the Detailed Highlights and Analysis of the Budget, by Clicking Here

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured ARTICLESHIP 31 October 2026
CA Articleship

apricus india

Navi Mumbai

CA Inter

View Details
Company
02 November 2026
Audit Executive

SRJP & Co LLP

Kochi

CA Inter

View Details
Company
Featured 07 November 2026
Paid Assisstant

DPV & Associates

Chennai

CA Inter

View Details
Company
Featured 29 October 2026
Accounts Executive

Synergy Keystone

Chennai

B.Com

View Details
Company
10 November 2026
Direct Tax Manager

CAAQ CONSULTANCY PVT LTD

New Delhi

CA Final

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
Featured ARTICLESHIP 28 October 2026
CA- Inter and Articles

N N V Satish & Co.,

Hyderabad

CA Inter

View Details
Company
23 October 2026
Sr. Accountant

SANKARAN & KRISHNAN

New Delhi

B.Com

View Details