With just a few days remaining for the Indian Union Budget 2012-13 to be announced, there are lot of open discussions on what can be expected in the budget of the new financial year. It is indeed one of the most trending topic to talk about as the country's economy is still not stable and high inflation over past few months along with traces of recession and European Union economic crisis are all having negative effects. In additions to the retail industry and corporate sector, the common man and the middle-class people of the country are also in the queue with strong expectations from the new budget hoping to get some reliefs over tax exemption limits and threshold in particular. In this article, we will be highlighting some expectations from the upcoming union budget to be announced on 16th March 2012 taking into account the common man's or the 'Aam Aadmi' point of view.
The small tax payers may get some relief out of the tax exemption limit which now stands at 180K for man and 190K for woman. This may be raised to 2.5 lakhs which would allow more cash to be available at the hands of the consumer and thereby enhance the consumption growth in turn as they will tend to spend more. In this connection, it would be also desirable to have the threshold for savings limit under 80C be increased from one lakh rupees to atleast two lakhs (which would be in the middle of the proposed Direct Tax Code of Rs.3,00,00/-) to drive people to save more in order to minimize their tax liabilities to further extent. If fulfilled, these changes can turn out to be a major relief for all the salaried individuals and help them deal with the burden of inflation in the economy.
Next comes the tax deductions limit in housing loans where current exemption limit is Rs.1,50,000 for interest paid against loans taken for houses. Considering the rising inflation and high rates of interest, it is expected that the deduction limit existing as of now be increased further to around 2.5 to 3 lakhs considering the present situation that is not favorable for people interested in buying house or property as the cost of housing is on its peak price with no significant housing exemptions available to the tax payers. Moreover, some basic wish lists for the common man would definitely include subsidy in the prices of essential commodities including prices of petrol, diesel and LPG cylinders. A more affordable education loan can also be mentioned as an expected change in the new budget to improve the scenario of higher education among the students.
Well, the list continues with the expectations of the common people never willing to cease and in every budget including this one too, people are very serious to know what is offered in favor of them. So, all eyes would remain focused on the union budget of the upcoming financial year 2012-2013 and Mr Pranab Mukherjee would be under spotlight with the people hoping to see an 'Aam Aadmi' friendly budget that fulfills all their wishes. The Railway budget 2012 is also on schedule and railway minister Mr. Dinesh Trivedi will be presenting it on 14-03-2012.
So, what's your say? Do drop-in your comment with your views and expectations from the upcoming Railway and Union Budget 2012-13.