CA Sandeep Kanoi

Union Finance Minister Arun Jaitley is expected to present his budget either in last week of June 2014 or in First week of July 2014. With Budget around the corner the Taxpayers are very enthused about expected tax reliefs from Mr. Arun Jaitley and started thinking that good days are around the corner and some are even shouting the BJP slogan.”Aache Din Anne Wale Hai“.

Tax Payers are optimistic because of Mr. Jaitley’s open advocacy of Increase in Income Tax Exemption Limit from time to time.

In his interview with PTI on 04.04.2014 Mr. Jaitley advocated hike in income tax exemption limit, enhancement of excise limit for small industrial units up to Rs 5 crore and immediate implementation of the Goods and Service Tax (GST). Mr Jaitely further said that The current income tax exemption for income of Rs 2 lakh should be gradually but significantly raised.

Related Post- Jaitley advocates hike in income tax & SSI exemption limit

Further on 21.04.2014 Mr. Arun Jaitley demanded hike in the Income Tax exemption limit from Rs two lakh to Rs five lakh. Mr Jaitley said that,”Direct Tax should be reduced. If the Income Tax limit is raised from Rs 2 lakhs to Rs 5 lakhs, 3 crore people will save Rs 24 crore which will lead to a small impact of 1 to 1.5 per cent of National Tax Fund.”

Now the question is will Mr. Arun Jaitley be able to implement the above mentioned demands after coming to power.

Some of the Middle class expectation from the Coming Union Budget of Mr. Arun Jaitley are as follows:-

  1. Basic Exemption Limit: – Increase in Income Tax Exemption Limit to atleast 3 Lakh to meet the increased cost of living.
  2. Medical Reimbursement – Limit for exemption for Medical reimbursement perquisites should be increased to Rs. 50000/- from existing Rs. 15000/- to meet the increased cost of Medical services.
  3. Transport Allowance – 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.
  4. Section 80C Limit – Section 80C was again reintroduced in place of section 88 w.e.f. 1-4-2006. Limit of One Lakh of Investment under section 80C was fixed in A.Y. 2006-07 and even after 8 Years the limit is same despite multifold hike in prices. The Limit needs to be increased atleast to Rs. 3 Lakh.
  5. Increase in Home Loan Interest Limit – Home loan Interest exemption limit for self-occupied house was fixed at Rs. 1,50,000/- wef A.Y. 2002-03 and even after 12 Years the limit is same. The Limit should be raised to at least 5 Lakh considering the 6-7 time raise in prices of property across the country.
  6. Faster process of Income Tax Refund – Income Tax Refund needs to be processed faster and taxpayers should not be penalized for deficit in revenue target by withholding the refunds and further there should be a mechanism which can insure that taxpayers should not be penalized for mistakes of tax deductor.

In addition to above people wants an end to retrospective amendments, Tax terrorism and wants a simple taxpayer friendly tax regime.

Author Bio

More Under Income Tax

Posted Under

Category : Income Tax (26337)
Type : Articles (15747) Featured (4130)

0 responses to “6 Expectations of Middle Class from Budget 2014”

  1. s sudarshana says:

    Mr. NAIDU it is nothing to do with Finance Minister/try.

  2. Venkatesalu Naidu says:

    Dear F.Mji, Please try amend the trnsport department faclities to senior citizens all over the country by providing 40 to 50% concession on travelling cost in almost all central and state transport modes. At present the Karnatak Governement is providing 25% concession in the state run transport corporations. This may be made applicable to all the transport modes both in central and state run modes of transport. Also the concession in percentage may be made uniform in all the states and central transport services.

  3. Venkatesalu Naidu says:

    Dear sir, The IT factor in the budget needs to be amended in respect of senior citizens. The pension granted needs to be totally exempted from the IT net. With regards & wishes.

  4. VISWANATHA AV says:

    Dear FM,

    Please do not give any extra Income tax exemption to woman unless she is under the class of single mother. In India the women earning is additional income to the family. In such case lowering the tax Exemption limit to women is fare to do so.

  5. Sukumar Mondal says:

    Sukumar Mondal
    Lack of transparency in deployment of Tax personnels / transfer and posting policy generates corruption to large extent in I T Department
    From the records of posting for few years past, you will find a section of favoured enployees are posted in sensitive / core assessment charges repeatedly while a large section of honest and efficient officers are left out of the circle even through out their career.
    Power of transfer and Posting rests on the Committee under the Chief commissioners(CCA) (Now Pr. CCA )charges but how they choose personnel for any particular post be it sensitive, non-sensitive is under secrecy.No criteria fixed so favoritism and malpractice plays vital role.
    In case of catching hold of any corrupt officer by CBI CVC etc. next two higher up administrative officers, under whom that particular officer was working should be fixed simultaneously.
    Justification:
    1.-They may be in league and knowing fully well about the activities
    maintain silence and get share regularly.
    2. They fail to control the personnels from corrupt practices which they are supposed to do

    – See more at: https://taxguru.in/income-tax/taxpayers-helpless-rude-arbitrary-behaviour-tax-officers-tarc.html#sthash.MSz2gpJt.dpuf

  6. N K Singla says:

    Dear respected
    Finance Minister.

    Pl.refer news paper business standard,Hindi,chandigarh,dt. 20.06 2014,page 5,headline “pahele budget mae kin batto ka rakhae dhiyan” by “Sh.Nitin Desai”
    we the middle class & Sr citizens donot agree with the views of sampadak ji that
    “AVOID TO PLEASE MIDDLE CLASS,DONOT GIVE ANY BIG CONCESSION IN I.TAX.BJP KO CHUNAVI JEET MIL CHUKI HAIN.NOW THERE IS NO NEED TO GIVE ALL THESE RELIEF. THIS TIME SAVINGS WILL GIVE RELEIF IN NEXT ELECTION YEARS”

    Desai sahib maan gae aap ko , aap to BJP kae bahut badae favorite ho.acchi rae Daito ho. Pehlo janta sae vaydae karo, election jitoo aur phir selfish ho jao next election tak.

    Respected F M ji,
    Aapki soach bahut theek hain apko middle class aur Sr ctzs,jinki badolat BJP jiti hain,pl.must take care of those.
    1. Sr. Ctzs who got only pension should be fully exampted from I. tax.They must be exampted from filing returns too.
    2. Tax exemption for middle class should be Rs. 5 lacs.
    3. To boost nation savings on different national schemes.there should Bea mini exemption of Rs.2 lacs under 80C.

    With regards
    N K Singla, Sr. Mgr(retd)
    State Bank Of India
    Ludhiana

  7. Shashi Sharma says:

    Finance Minister has got a God given noble opportunity to meet the needs of the general middle class by giving them what they deserve,such as,
    1 Raise the Income Tax exemption limit to 5- Lac,to all and 6- Lac to Women and Sr. Citizens.
    2. 80-C limit to 3- Lac.
    3. Student loan @ 5-6 Percent to the needy.
    4. Sr.Citizens be given 50 Percent Travelling Concession in all modes of transportations.
    5. Unethical expenditure of the Govt.be cut down to minimum.
    6. Housing loan for self occupation be brought down by 4-5 Percent
    7. Infrastructure development and Industry be given special attention.
    Thank You ,and Good Luck

  8. Bhavna America says:

    Mr.Finance Minister ,you are aware that middle class which brought you here has some genuine expectations and you are morally bound to address them. I ,in America understand that Economy of
    a country grow only if general middle class and industry grow sidebyside. Youth is given skilled training and jobs.You should cut down the unethical Govt. Expenditure. Finance Minister shouldalso
    be Expenditure controlling Minister in the Indian Govt. I wish India to be a great economy.
    We Indians living in America are always ready to support all such actions . Budget should include,
    1. Income Tax exemption limit must be raised to a respectable level ie. 5- lac.
    2.Student loan should be at 5 to 6 Percent.
    3. Sr. Citizens and women be given Income Tax exemption unto 6- Lac.
    4. Sr. Citizens be given 50 Percent traveling concession in all modes of transportations.
    5. Housing loan for self occupation be given concession of 4-5 Percent.
    6. 80-C. limit be raised to 3- Lac.
    7. Industry and Infrastructure development be given priority.
    8.Foreign Investments in manufacture and power generation be simplified and encouraged with
    minimum interference from Govt.
    9 Pravasi Bharti be given incentives to initiate certain projects in research,education, and IT etc.
    10. Water and Electricity supply be given top priority by inviting Foreign investments.

    Thank you for considering them, Wishing You good luck and nice time ahead.

  9. Shashi says:

    I agree that middle class section of the society has many hopes from the first budget of Arun jaitley’. eg. 1 Income Tax limit to 5- Lakh.to all . Sr.Citizens and Ladies limit be raised to 6-Lakh.
    2. 80-C. limit to 3- Lakh. 3. 3. Traveling concession to Sr.Citizens. Upto 50 Percent
    4. 45 Percent cut in the wasteful expenditure of the Govt. on luxuries and show of.
    5. Industry and Infrastucture be given the priority to generate jobs.
    6. Study loan to the needy students be @ 5 Percent.
    7. Housing loan be given some concession.
    Thanks Mr. Finance Minister.

  10. S P Sharma says:

    Budget must fulfill the needs of common middle class section . eg. 1 income tax limit to be 5 lakh. 2. 80-C section limit to be 2- Lakh or higher if possible. 3. Traveling concession be in all modes of.
    Transport for Senior Citizens . Thanks.

  11. P ROY says:

    India has about 1,600 government servants (including state governments) per every 100,000 people i. e. about 1.5 %.
    If about 50% of income tax collected every year is spent for paying salary to those 1.5% voters only and rest 50% of income tax collected every year is spent for paying pension to retired government servants.
    Then do Government need income tax if government departments are made profit/service centers to be runned by service tax earned only.

  12. kapil Agarwal says:

    Rspected Sir,
    it is not rational to pay before you realise it, so incomes received should only be taxed in the year of receiving, and govt wants 100% tax for income upto 31st march, to be paid by the 15th March. it is not possible to make your accounts in advance, also banks, institutions take lot of time to give you details of interests & TDS, generally payments upto 31st March are credited only in 1st week of April.
    Sir you should give time to people to properly collect their income details and pay taxes accordingly and last date for tax payment final installment should be 31st May for incomes upto 31st March.
    Also interest charged by Govt. should be allowed to be deducted as interest expense subsequently.

  13. LL Shukla says:

    respected jetly saheb,
    now your good self must full-fill your commitment/willingness which was demanded by you on 21.04.2014. tax exemption up to the 5 lakhs must be exepmted now bneacuse you are in full majority. now we are waiting Acchhe din Ane wale Hai.

    LL Shukla,NTPC, unchahar Raebareli (UP)

  14. vibhakar says:

    The fm may consider levy 10% income tax without any exemptions and 10% service tax.The tax burden on all citizens would thus be equal.corporate tax may be 20%.simlification of income tax would result in less bureaucracy and reduced cost of collection of taxes.returns should be made of one page.capital gains tax should be abolished any gain should be included as income and taxed as such minus indexed cost of acquisition and improvements.state govt. should be pusuaded to reduce stamp duty to 2% of the propert value.guideline value may be revised half yearly.These measures would curb generation of black money,give relief to honest tax payers and widen tax net.giving a feeling of participation by all the citizens in nation building.

  15. P ROY says:

    A REQUEST TO FM FOR

    1. NO TDS ON FD INTEREST
    2. SAME HOME LOAN INTEREST RATE FOR ALL BANKS AND ALL CUSTOMERS NEW AND OLD
    3. NO PROVISION FOR USING DIFFERENT BASE FOR HOME LOAN INTEREST FOR OLD AND NEW CUSTOMERS #Send-Postcard-To-FM

  16. s sudarshana says:

    Mr.Arun Jaitly: Please adhere to what you said on 21/04/14 and rise the limit to Rs.5 lakhs.
    Mr.S.C.Kapoor: If the Return is in Order, the refund is quick. If there is delay, IT dept will pay interest for the delay.
    Mr.R.L.Garg: Why no tax for the pensioners after 85/90 years; They get an addl. rise of 20%/40% after attaining 85/90 years of age.
    Prakash: (Limit the pension to 10 to 15k as it is the duly of the children to take care of the parents..). What are you actually, child/grownup man/man with children? When one is a child, and depending upon his parents, he says “DUTY OF THE CHILDREN TO TAKE CARE OF THE PARENTS”, when he grows to a man and starts earning, he feels ONE SHOULD BE WISE IN FINANCIAL PLANNING TO TAKE CARE OF HIMSELF as his priority is for his FUTURE. When he has children and in his middle age, he will be having his parents on one side, his children on other side and proves to the whole world what should be his priority, if the parents dont have any property/asset etc. When he grows old he SHOUTS HIS CHILDREN ARE NON RECIPROCATIVE AND forgotten all the parnets have done to them!! Sit back adn think! By curtailing the pension, no guarentee who and where it will go (from govt.).
    Mr.L.M.Jagannath Rao: (All should be taxed). Well said sir. Rajiv Gandhi once said (candid enough) govt spends Re.0.85 to collect Re.1/=. If all should pay tax the net effect will be minus income to govt.! Then they will start thinking better not to have tax at all!!

    Mr.Finance Minister:
    Points to ponder:
    1. Why no releif on HRA to those who stay in their own house? They should get at least 10% of the income as exemption.
    2. Why no HRA relief to pensioners? Thinking all pensioners are staying in free accommmodation is day dreaming.
    3. Amend 80-TTA to include all interest and limit the exemption on interest earned to at least 20,000 per year.
    4. Make the employer/authority to issue Form 16/16A to do so by 30/4 so that one can file the tax returns from 1/5 itself.

  17. SN DAS says:

    Middle Class salaried persons very much expecting enhancement of retirement age from 60 yrs to 62 yrs which was much talked of during last year of UPA II regime. Though this two years increase will not very much hamper employment scenario of youth in India but obviously will help the industry and government from highly experienced manpower and less pressure on economy by avoiding immediate release of huge superannuation dues (Big exodus in 2014 & 2016). On the other hand the average age of mortality has increased greatly which is to be supported by Govt.
    S.N. Das

  18. Geeta G. Hiremath says:

    Excepted increase in tax limit is positive sign, apart from that Interest earned from such source of income is to be tax free so that middle class people start saving more and thereby inflation can be controlled.

  19. aditya parida says:

    IT exemption limit should be extended to 3 lakhs and Accountant defination must be changed in the new draft DTC.There is no specialty with CAs over CMA and CS except that articleship.The logic of CS and CMA is “learn when u earn”nothing bad in principle.Expertize always comes with work.

  20. Dr.M.Jagannatha Rao says:

    To the best of my knowledge people who actually pay income tax are 1. Those who are employed (or Retired from employment, when their income reaches taxable levels) and 2. Those in Business. The former class have no way of avoiding paying income tax for the simple reason that it is deducted at source. On the other hand, the Business class — if I can generalize — process their income statements through a Chartered Accountant. However, there is a huge, huge section of people (other than the two classes mentioned above) earning (be they are auto/taxi drivers, paan shop wallahs or petty shop owners, street side vendors and so on use the infrastructure created by the government (be it State or Central) for a living.

    By the by, let me make myself clear on this. To put it in simple terms, every drop counts to the volume. So, everyone contributing/paying income tax contributes to Nation building.

    I am looking forward to the day when the government takes the bold step to bring everyone earning (irrespective of the source of income) under Income Tax purview.

    Will the Sri Narendra Modi headed Government take such a bold stop to bring ‘all earning people’ (be it a big income or a small income) under Income Tax bracket?

  21. ajay rastogi says:

    It should be welcomed if income tax limit is increased from 2.0 lac to 5.0LAC , definitely it be will be called “achhe din aane wale hai” , but i also request there will be a changed in Pension policy in the Private Sector ,they gets a very pitiable amount after retirement through provident fund Pension scheme, I will appreciate to Honarble FM , IT he look into in this particular scheme and amend the same.
    Regards,
    AJAY RASTOGI

  22. Dasgupta says:

    Tax free education for up to two children is Rs.100/- [ONE HUNDRED] each. It is a mockery because the Auto Driver takes more than that for only one day.

    Hon’ble Finance Minister should raise this limit.

  23. MANDEEP SINGH says:

    I appreciate SH. BSK RAO JI for raising voice for common interests of all tax professionals, assessees & for government revenue.

    IT IS MY ONLY DEMAND FROM HON’BLE FINANCE MINISTER.THAT ALL STATUTORY CERTIFICATES FROM ACCOUNTING PROFESSIONAL SHOULD BE ABOLISHED. AS LIKE CLIENT IN COURT IS FREE TO PLEAD & ARGUE ITS OWN CASE BEFORE JUDGE.
    SIMILARLY ASSESSEE SHOULD BE FREE TO AUDIT HIS OWN BUSINESS ACCOUNTS IN Income tax & other tax acts.

  24. MANDEEP SINGH says:

    I am often surprised by demands of CHARTERED ACCOUNTANTS from government for their own selfish interests & shows that such demands for government revenue. In recent comment CA POOJA INDANI suggested for statutory service tax by CA’s.But how can we forget our assessees wear out distress of statutory provisions in income tax since 1984.
    Except this DAY BOOK,CASH BOOK, LEDGER & STOCK register maintained by every businessman for compliance tax acts as like INCOME TAX, VAT, SERVICE TAX, EXCISE & OTHER TAX ACTS then what is need of SEPARATE CA CERTIFICATE UNDER DIFFERENT ACTS.
    Only reason behind it ICAI always misleads to government to give full employment to its members. When ICAI will hearty sincere to widen tax base of our country then ICAI WILL NOT STRESS UPON MEANINGLESS CERTIFICATES FROM CA’s.

    At last it my suggestion please be honest for interests our country & its businessman.

  25. Prakash says:

    WHY SHOULD TAX PAYERS MONEY BE GIVEN IN CHARITY TO VERY SR. CITIZEN BY REDUCING AGE LIMIT TO 70YRS. PENSION SHOULD BE CAPPED AT 10-15 THOUSAND. THIS SHOULD BE SUFFICIENT TO RUN A FAMILY OF TWO . I KNOW OF CASES WHERE THEY GET 50 K OR MORE . IT IS THE REPONSIBILITY OF THE CHILDREN TO TAKE CARE OF ELDERS FOR ALL THE SACRIFICES THEY MADE DURING CHILDRENS UP BRINGING ASSUMING THE INDIVIDUAL DID NOT PLAN ANDPROVIDE FOR HIS FUTURE . THEN IT IS HIS FAULT.

  26. B.S.K.RAO says:

    Bala Sab,

    In Supreme Court, Senior Advocates can only argue. However, CAs can plead & act in tax matters before other authorities, only if Tax Practitioners Bill covering all class of Tax Professionals brought in India. If not other than Advocates should appear before authorities under CPC/Evidence Act only.

  27. B.S.K.RAO says:

    Sukumar Mondal Sab,

    Indian legislature provided special class of persons called Advocates in Advocates Act, 1961 to practice all Indian laws. Therefore, appearance clause not yet all required in any Indian statute. Bar Council of India Vs A.K.Balaji [SLP (Civil) No(s) 17150-17154/2012] Dt.04.07.2012 (SC) and A.K.Balaji Vs Govt. of India (2012) 35 KLR 290 21.02.2012 (Madras HC) it was clearly held by Hon’ble Supreme Court & Madras High Court that Advocates alone are entitled to practice the Profession of Law both in litigious & non-litigious matters, nullifying the effect of Section 33 of Advocates Act. This also confirms to Section 29 of Advocates Act. The verdict of Supreme Court is the declared law of land, binding on all throughout the territory of India under Article 141 of Indian Constitution & contravention liable for action under Article 129 read with Article 142(2) of Indian Constitution. Income-Tax Act being “LAW” Advocates alone are entitled to Practice, Plead & Act before the assessing officers of Income-Tax Deptt. On date, appearance clause Section 288(2) of Income-Tax Act has been subjected to review of Apex Court.

    Furnishing of Certificate & Reports in Income-Tax Act require both interpretation of facts & law. Interpretation of facts is not a tough job, but interpretation of law is a tough job. Practice of law is the Prerogative Power of Advocates in India. Whereas practice of Cost Accounts, Management Accounts & Financial Accounts are not the prerogative powers of respective professional body. Because, penalty has been prescribed U/s 45 of Advocates Act, 1961 for persons illegally practicing the Profession of Law. Under Indian Constitution CAG are the Auditors with wide powers, carrying out meaningful job. Due to T.D.Venkat Rao (SC) case only Chartered Accountant issue Tax Audit Certificate in Income-Tax Act. In view latest verdict in the case of Bar Council of India Vs A.K.Balaji (SC) Section 288(2) of Income-Tax Act require deletion from the the statute. In the result only CAs will conduct Tax Audit & only Advocate will plead & act before the Income-Tax Authorities. Can any one imagine the ill effect of this situation to Govt. revenue & troubling assessees to approach more than one Tax Professional to give compliance in Income-Tax Act.

  28. B.S.K.RAO says:

    Particulars of Income-tax admitted in tax audit cases for Asst. Year 2012-13 & 2013-14 that relates to return filed in ITR-4, 5 & 6 as provided by CPC, Bangalore as at 28.05.2014 are as under:-

    Particulars Asst. Year 2012-13 Asst. Year 2013-14

    Total Tax Admitted in ITR-4 Rs. 23,986 Crores Rs. 23,952 Crores
    Total Tax Admitted in ITR-5 Rs. 20,712 Crores Rs. 21,556 Crores
    Total Tax Admitted in ITR-6 Rs. 2,92,266 Crores Rs. 2,34,456 Crores

    Margin derived by farmers is not taxed in Income-Tax Act, but margin derived by next sellers of such agricultural output is taxed in their hands in Income-Tax Act. Presuming the output of corporate assessees reach the ultimate consumer in three stages & considering tax admission in corporate cases & 50% of such corporate assessees do business with non-corporates covered by tax audit, who are in between the corporates & retailers and also considering non-corporates engaged in service sector, I am of the strong view that combined Income-Tax admission as per return filed in ITR-4 and 5 covered by tax audit U/s 44AB should have crossed at least Rs. 15,00,000/-Crores. (Basis being 80:20 ratio of Ag. & Ind. Output).

    Since introduction of Tax Audit by only CA’s in 1984, our esteemed Central Govt. has lost heavily on account of Income-Tax. Therefore, ICAI (Financials) should reimburse the same to the Central Govt.

  29. sukumar mondal says:

    ADVOCATES ARE THE EXTENDED OFFICERS OF COURT but how you assume they will be tax expert ?

  30. B.S.K.RAO says:

    ADVOCATES ARE THE EXTENDED OFFICERS OF COURT, THEREFORE ONLY ADVOCATES SHOULD ISSUE CERTIFICATES/REPORTS IN ALL INDIAN TAXATION LAWS & NOT ACCOUNTANTS

  31. Ravindra says:

    Earlier Finance minister had introduced the Super senior citizen category for Income tax slab purpose. May we appeal to the present Finance minister to expand this relief for super senior citizen with no income tax upto Rs 10 Lacs income , no TDS whatsoever and manual filing of return as voluntary and not compulsory for income upto Rs 10 lacs.

  32. D K says:

    Sir I have camebform Banker , I would like to tel l u pl close a give subsidy on textile but give directly tax reduce therfore corruption is closed

  33. CA POOJA INDANI says:

    SERVICE TAX AUDIT FROM CHARTERED ACCOUNTANT:-
    At present the service tax audit is conducted by department officers on periodical basis and randomly selection basis as per monetary limits.Such type of Audit has there own limitations and increase the litigations. I suggest to Honorable Finance Minister, Mr. Arun Jaitley to introduce the provision of service tax Audit from Chartered Accountant.the audit from experts on regular basis give correct data,accuracy,reliable data,detemination of correct tax liability with relevant accounting standards.this will be helpful for policy makers as well as Law makers of India. this provision will also help to NATIONAL LITIGATION POLICY.

    • R.L.Garg says:

      I agree that audit should be done by outsiders like Cost Accountants which falls into the denation of Accountants

  34. Bala says:

    Just because the Rule 12A includes (1) Legal Practitioners, (2) Chartered Accountants, (3) Cost & Management Accountants, (4) Company Secretaries (5) Income-Tax Practitioners, it does not mean all are equal to chartered Accountants. If you studied Law/CMA/CS, you should practice law in Courts/Cost Audit/Secretarial work.

    After knowing the inability to glitter in their respective field, people come to this profession as the section gives some opportunity for survival which ultimately results in their mindset to spoil the work of CA professionals.

    Section 288(2) should be amended to allow only CAs to represent the assessees and the same should be extended upto the Apex Court which will save huge cost for the assessees which they have to pay to Advocates.

  35. NAMDEO CHAUDHARI says:

    Hon.Finance Minister,
    pls. consider the expectation of people who are working and gets salary.pls. change the exemption limit upto Rs.3,00,000 and the limit of investment u/s.80c up to Rs.5,00,000.which will help to create an investment and capital formation on large scale.Here the govrnment salary holders have to deduct 30% tax at source due to 6 th pay.That means when anybody gets salary of Rs.1,00,000, then he have to dedct Rs.3o,000 from his salary which clears that he will get Rs. 70,000 only.This way many employees deduct their taxes and says that 6 th pay is not benefitial to them due to taxes.If the government wish to give satiesfaction to these employees ,then increase the exemption limit upto Rs.3,00,000 and limit u/s 80 c upto Rs. 5,00,000 and fix the tax rates as 0 to3,00,000-0%, 3,00,001 to 10,00,000 -10% and 10,00,000 to 20,00,000-20% & 30 % on exceeding. it will be benefitial to all .

  36. Mahaveer Bhandari says:

    Accountability of AO, Asst.Commissioners, Commissioners must be in place. They all indulge in tax adventurism causing unnecessary harrassment to the tax payer.

    Refund issues take years and the AO’s do not bother to help the assesses. If asked for refunds, a reply is given the same is adjusted against previous years demands without giving any details of earlier dues.

    Getting refunds have become pain to tax payers. Make AO’s anserable.

  37. NAMDEO CHAUDHARI says:

    RESPECTED SIR,
    PLS.NOTE THAT ALL INDIAN ARE NOT EDUCATED PERSONS.THOUGH THEY ARE TAX PAYERS THEY HAVE TO TAKE HELP OF EXPERT FROM THAT FIELD.BUT SOME PERSONS WHO CAN UNDERSTAND THE INCOMETAX ACT BUT UNABLE TO GO THROUGH THE ONLINE PROCESS.FOR THESE PERSONS MANUAL SYSTEM SHOULD AVAILABLE.FOR E.G. RECTIFICATION PROCESS, FILING OF TAX RETURN AND OTHER SUCH ACTIVITIES.
    EACH AND EVERY PERSON IS NOT ABLE TO GO TO EXPERT ALSO. AND HENCE SOMETIMES THE PROBLEM CREATES AND GOT THE NOTICES FROM DEPARTMENT. ACTUALY THE TAXPAYER MAY NOT BE GUILTY BUT DUE TO MISTAKE IN TAN( IN FORM NO 16) IN FILING A RETURN ,NUMBER OF ASSESSEES GOT THE DEMAND NOTICES. SO IT SHOULD BE RECTIFY BY THE EMPLOYERS LETTER ALSO.PLS. MAKE SOME CHANGES IN PROCEDURE WHICH IS VERY CRITICAL.

  38. MANDEEP SINGH says:

    Hon’ble finance minister ji,
    Following amendments required to the income tax law.

    1) Make easy accounting system. unnecessary audit certificates u/s 44ab should be deleted for NON-CORPORATE assesses. These certificates, present in income tax till today since 1984 without evaluating its output. It is unnecessary financial burden & wastes of time of small traders.

    2) As per honb’le SUPREME COURTS order assessees are in confusion regarding whom to engage for income tax matters ADVOCATES OR CHARTERED ACCOUNTANTS,ITP, CS, CMA etc. SC ORDER IS A LAW UNDER ARTICLE 141 OF CONSTITUTION.
    AS PER SUPREME COURT ORDER ONLY RECOGNIZED LAW PROFESSIONAL CLASS ARE CALLED “ADVOCATES”.

    3) Section 44ad net profit should be reduced from 8% to 4% due to competition in business GP ratio is very low.

  39. D Gandhi says:

    I would like the Finance ministry to take call on common KYC just like how we have PAN, it should be either PAN for KYC(the PAN should carry address both current address and permanent address.

  40. kanwal Juneja, Advocate says:

    Sir,
    Increase in basic limit for all class of persons as suggest above will be welcome by the citizens of India.

    The pending rectification application should be disposed within one month otherwise the Assessing Officer should be held liable for some charge.

    Stay of demand where assessment are made high pitch twice of return income or more should be stayed till order so 1st appellate authority as laid down in Instruction No. 96, F. No. 1/6/69-ITCC, dated 21st August, 1969, issued by Dy. Prime minister and subsequent by various court of India.

    A direction to CIT (Appeals) be issued to dispose off at least 50% of High Demand appeals with six months of its institution and other low demand appeals be also disposed off adopting FIFO.

    Thank you

  41. SIVARAMAN VISWANATHAN says:

    Even the Service Tax exemption limit should be raised. The reason: Excise Duty and Service Tax are on par since the Point of Payment was changed from Cash to Billing.
    The ED is exempt upto 1.5 crores. There is much less input cost in Service Tax in comparison to ED. Taking very conservatively 25% as GP margin on Manufacture it works out to 37.50 lakhs on a TO of 1.50 crores.

    Hence the basic exemption must be at least 37.50 lakhs if not more.

    Any case there are many reverse charge taxation and the revenue loss should be negligible.

    Regards
    Sivaraman V

  42. CA Dinesh Sodani says:

    Plus STANDARD DEDUCTION @ 30%…..

  43. Sukumar Mondal says:

    Interest income of senior citizens should be tax free – they live on this source ofincome – a small section has pension income

  44. Sukumar Mondal says:

    In case of senior citizens Interest income on the investments made out of Terminal benefits received at the time of retirement or other wise should be made tax free

  45. advocate jasbir singh says:

    sir at least limit 0f 80C be raised at least to Rs. 2 lac and housing loan interest limit must be raised to 3.00 lac . so that middle class family can save for future life ,as there is no future security from any govt in India.

  46. Rajesh, Mumbai says:

    In Mumbai, Property Rates are exorbitant. Any one can hardly get 1 BHK at 1.5 crore. If Luckily one gets,For 1 BHK Flat taken on loan, EMI will be 1.5 Lac for 20 years. One’s Income has to be at least 30 lacs to be Eligible for 1.5 crore Loan.

    There is maximum flow of Black Money in property Deals.For old property, Official agreement value is hardly 1/2 or 1/3rd of actual prices. FM can consider following to bring property prices down.

    1) setting up A portal where seller has to feed (for public information) total information of property agreed to be sold including price.

    2) Public within one week of such data feed, can inspect property / offer higher prices of such property.If offer is higher by more than 50%, Seller has to sell the property to highest bidder.

    3) An online fees can be charged from offerer to avoid bogus Bid.

    Above provision will definitely check black money and increase government revenue also.

  47. ysmuzumdar says:

    dear f.m.
    looking at the above suggestions it is better to abolish income tax,service tax etc or atlest it should be above rs.25 lakhs so that 99% of salaried and S.M.E will be out of the I.T. net.

  48. S C Kapur says:

    Faster process of Income Tax Refund be introduced/instructed :

    Income Tax Refund needs to be processed faster and taxpayers should not be penalized for deficit in revenue target by withholding the refunds.

    FM to ascertain reasons why Income Tax Refunds have been held up and under whose instructions. We understand such Refunds have not been made for last 2-3 years to so many persons.

  49. CA. Rajendra Chauhan says:

    I am of the view to broaden the tax base and to increase the nos of assessees, basic exmeption limit should not be increased, rather lower tax rate say 2% may be levied up to 5 Lacs, and the same may be compensated by creating tax bracked for super rich may be income above 100 lacs say @50%.

    Further time limit should be prescribed for disposal of set aside matter, appeal, appeal effects order, issue of certificate under sec 197, refunds, and also to avoid the unnecessry creating high demand with no grounds the AO should be made answrable.

  50. K K KATARYA says:

    Service Tax rate should be 8 % + 2 National Defense Contribution ( NDC) = 2 % Ed. Cess in all.

    It is the time to involve every body directly.

    Regards,

    K K KATARYA

  51. MK SRIDHARAN says:

    Sir,
    Your observations are correct and is the expectation of the common persons.
    Further form 16A particulars are required to be linked to FormAS2 credit
    as many of the tax deductors especially tax deducted on the fixed deposit interest do not furnish the Form16A for furnishing the details in the TAX Return. This is especially affecting the thousands of senior citizens who do not furnish false 15g/15h declarations. Hence it is suggested when the
    tax deductor pays tax on the interest deducted it should automatically reflect all the particulars and it is possible with the computerisation and Traces should do.

  52. B.Syed Sultan Mohideen says:

    CA Sandip should have included the deduction limit presently available to the Middle Class who are most affected by teh soaring rental charges. Fixed in teh year 1986-87 even after 28 years it remains un changed. No FMs even probobably the ICAI could do a favour to the Middle class having no residential house who are made to part around 50 % of the earnings on rents.

  53. K K KATARYA says:

    NOW IT SHOULD BE:

    Basic Exemption Limit:
    MALE: 3.00 L
    FEMALE : 4.00L

    Medical Reimbursement:
    50000/-

    Transport Allowance:
    3000/- pm
    or
    Two Wheeler 50 LIT pm x 12 m = 600 Lits. PA
    Four Wheeler 100 Lit pm x 12 m = 1200 Lits. PA
    Average Cost to be declared by Govt.

    Section 80C Limit:
    2.00 L

    Increase in Home Loan Interest Limit:
    5.0 L

    Trust, all above is justified in view of increase in cost of living and market trend.

    K K KATARYA

  54. sanjay shrotriya says:

    Expectations from professionals & general public from Honorable FM is drastically reduce interaction between public/professionals and staff of Government officials with the help of Technology. At least this should happen with regard to basic registrations at Service Tax, VAT, Excise. These departments are generating Revenue for the Government, therefore registration should take place quickly without any hassles & personal interaction. Documents can be filed on line with PDF attachment,JPG Photo, the concern office can verify documents, if not OK sent back for corrections & finally registration certificate should be signed by Digital Signature and sent to Applicant. Rather personal visit for registration should be strictly prohibited

  55. B.S.K.RAO says:

    Hon’ble Finance Minister,
    Govt. of India,
    New Delhi

    1. As per Section 288(2) of Income-Tax Act, 1961 eight class of persons are authorized to represent the assesses. Among them only following five class of persons are authorized prepare return under Rule 12A of Income-Tax Rules, 1962

    (1) Legal Practitioners
    (2) Chartered Accountants
    (3) Cost & Management Accountants
    (4) Company Secretaries
    (5) Income-Tax Practitioners

    2. Original Income-Tax Act, 1961 was fantastically drafted by learned officials in Finance Ministry & it was capable of meeting the expectation of the Govt. in all future events, except requiring amendments for events/changes taking place in this 21st Century. Disturbance to the original intention of legislature to the Income-Tax Act, 1961 started in 1984 by the intervention of Institute of Chartered Accountants of India by way of inserting mandatory Tax Audit Certificate U/s 44AB by only Chartered Accountants. This was also cautioned by Sri.P.C.Padhi, former Chairman, Central Board of Revenue and Deputy Controller & Auditor General of India, Sri.D.K.Rangnekar former Editor, Economic Times, who were the members of Direct Taxes Committee 1971, popularly known as Wanchoo Committee & gave dissenting note on the issue.

    3. The word “Chartered” of The Institute of Chartered Accountants of India (Financials) denotes some thing of a dominion state of affair as against Sovereign Independent Republic of India. On date, there are 46 Plus Mandatory CA Certificates in Income-Tax Act, which were inserted on the behest of ICAI (Financials) since from 1984. Because of 46 Plus mandatory CA Certificates in Income-Tax Act, 1961 Non-CA Tax Professionals viz. Legal Practitioners, Cost & Management Accountants, Company Secretaries & Income-Tax Practitioners can not exercise the authority granted in the statute fully & independently. This is practically causing strict hurdle for voluntary compliance. This position of Non-CA Tax Professionals is comparable to decree of court which can not be executed.

    4. Audit means “verification”, depending on the purpose they are classified as Energy Audit, Environment Audit, Product Audit, Process Audit, Legal Audit in USA & Tax Audit in Indian Income-Tax Act. Here, person conducting audit should be specialized in that subject. Hence, the word “Audit” is not the domain of Chartered Accountants, Assessing officers of Income-Tax Deptt. come from different streams also conduct audit in assessment proceedings are not Chartered Accountants. In conclusion, person specialized in Income-Tax law should issue Certificates/Reports in Income-Tax Act.

    5. On careful study of Section 288(2) of Income-Tax Act, 1961 read with Rule 12A of Indian Income-Tax Rules, 1962 it has to be presumed that all five class of persons referred in Para No.1 above possess the knowledge of Section 145 read with 14 Accounting Standards of CBDT, required for Income-Tax Practice. Because certain qualification has been fixed in Income-Tax Act for these five class of persons. Further, Accounting Standard framed by ICAI (Financials) & IFRS not required for Income-Tax Practice. Here the question is, when such four class of Non-CA Tax Professionals are authorized to prepare return under Rule 12A of Income-Tax Rules, there is no justification to prohibit them for issue of Certificates/Reports in Income-Tax Act. Therefore, it is clear that on introduction of CA Certificates in Income-Tax Act, original intention of legislature in Rule 12A of Income-Tax Rules has been struck down.

    I hope that our esteemed NDA Govt. will consider above points and amend Income-Tax Act, 1961

  56. R.L.Garg says:

    In addition to above I further say as under:-
    Mr Jaitly, including other public at large would have seen the blessings of elderly mother of Mr Modi who has always given full respect to her all the times and even before taking oath for Prime Minister. I therefore suggest to Mr Jaitly:
    that he should reduce the age of very Senior Citizen to 70 Years but not more than 75 years and increase their tax exemption limit to 15 lacs. All the incomes of above 90 years be made totally free. Needless to add that in this bracket only a few people will get the benefit but ensure them good old life to live without any financial restraints.
    thus he will get the blessings of all the elderly persons

    2-Necessary amendments in the Income Tax Act for laying the time Limit for Assessment Officers and Appellate authority must be laid down including penalty upon such officers who sit on files without any reason. During the period od Appeal proceedings the right or wrong demand should stand stayed.
    3- All Officials be made answerable who are just showing completion of Assessment without sending refunds. The want that the Assessee should visit their office for every refund however small or big it may be, just to extract some gratification.

    Please convey these points also to our dynamic Finanace
    inister Mr Arun Jaitly

  57. Naresh Khanna says:

    Sir – What about increase in Service Tax basic Exemption limit of 10 lacs. it should be on par with Tax Audit exemption limit of 25 lacs. Small Service provider has neglected a great deal!

  58. Melvin Joseph says:

    India as a country is not having any social security scheme for the retired people. There should be a scheme to encourage savings for retirement. NPS requires lot of clarity including taxation at maturity. Tax exemption for long term savings (mutual funds or similar products)for retirement other than Section 80C will be a welcome step in this direction.

  59. AKBagga says:

    Dear Finance Minister, I bring to your notice that the exemption limit for Leave Encashment and Gratuity at the time of retirement was fixed long back for private sector employees and there is no increase thereto inspire of four fold inflation and salary hike during this period. The limit of Rs 3 lac and Rs 10 lac should be increased to 15 lac and 30 lac to give big relief to senior citizens. Moreover for govt employees it is fully exempt which is very unfair and unjust . Pl look into it and make amendment in the Bugdet thanx AKBagga

  60. Tushar Fanse says:

    atleast not all but basic 3 point implemention required for middle class people.

  61. A. Ranganathan says:

    One more suggestion, The FM must grant exemption to super senior citizens from filing tax returns if taxable income is less than 10 lakhs. I know how arduous it is to keep track of the various income advices, some by post, some by emails, many not at all and to collate them at the end of the year for presentation to tax.

    There must also be a clear stipulation as to long the vouchers etc. are to be preserved.. At eighty plus believe me, it is very very difficult to store and maintain a whole lot of files.

    A. Ranganathan

Leave a Reply

Your email address will not be published. Required fields are marked *