What does a middle-class professional, a chartered accountant by training, want from the Budget? No tax rebates for guessing -- raise the slab on taxable income from the current Rs 5 lakh to Rs 10 lakh, as “it means more income in hand for saving or spending on oneself,” says Namritha Kadamba, 38, accounting manager at Ingenia Polymers, Powai.
Other wishes include controls on spiralling medical and fuel costs.
Her husband, Deep Kadamba, 42, senior software engineer at L&T Infotech, says last year, there were a few changes in tax laws but the salaried class had no new avenues for tax planning. “The changes did not lead to substantial savings for individuals. The government should also revise the tax slabs, which is long overdue,” he says, echoing his wife's sentiments.
Namritha further says the government should revise deductions under section 80C, which replaced section 88 in 2005. The government had also introduced schemes like Sukanya Samriddhi Yojana, which falls under section 80C. “Either the tax slabs should be revised or the deduction amount increased as this would lead to more tax savings. As regards the long-term capital gain tax - currently, the capital gain on sale of equity is taxable - if this tax is removed, more people will invest in the stock market,” she feels.
Here's their wish list:
1. Personal income taxes should be tweaked so that middle-class tax payers have more disposable income.
2. The deduction limit for 80C should be revised.
3. Long-term capital gain tax should be removed, so that people can invest in markets
4. Reduce duty on gold import
5. Safer tax beneficial investment options
