A vast majority of salaried employees in a host of trade and industry sectors want Finance Minister Mr. P Chidambaram to raise the income tax exemption limit to at least Rs.3 lakh and increase deductions such medical and educational allowances in the Budget, an ASSOCHAM (Associated Chambers of Commerce and Industry of India) survey said.
The survey was conducted in major places like Delhi - NCR (National Capital Region), Mumbai, Kolkata, Chennai, Bangalore, Ahmedabad, Hyderabad, Pune, Chandigarh & Dehradun on ' Union Budget 2013 - 14: Common man's expectations from the FM', the industry body said.
About 90% of respondents said the slab of tax free income has not moved up in line with real inflation. The current basic exemption limit of Rs.2 lakh should be increased to at least Rs.3 lakh with the limit for women going up to Rs 3.5 lakh. This will increase the purchasing power of individuals & stimulate demand.
'Pushing the basic exemption limit the tax payers in saving taxes and will also align it with the proposals made by the Parliamentary standing committee on the Direct Taxes Code (DTC)', the ASSOCHAM survey noted.
With increasing healthcare costs, the existing tax free limit of Rs. 15,000 should be increased to Rs 50,000, said 89% of the respondents.
The transportation allowance granted by the employer to his employee for commuting between the place of work and residence is tax-free to the extent of Rs. 800 per month. This limit was fixed more than a decade ago, and needs to be revised upwards to at least Rs. 3,000 per month, given the rising commuting costs, added the survey.
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