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

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Telegram

taxguru on telegram GROUP LINK

Download our App


More Under Income Tax


  1. 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.

  2. 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.

  3. 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.

  4. 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.
    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:

  5. 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

    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

  6. 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 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

  7. 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.

  8. 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- 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.

  9. 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.

  10. 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.

Leave a Comment

Your email address will not be published.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

Search Posts by Date

September 2023