Budget and Aam Aadmi: What actually matters?


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Budget and Aam Aadmi: What actually matters?

Last Updated: Saturday, February 9, 2013, 14:12
 Comment 15
Ajeet Kumar/Reema Sharma

Budget 2013-14 can be termed as the budget of aspirations since this is the last budget that the ruling UPA-2 government is going to announce. The tough decisions have already been taken in the form of reform push, rail fare hike and fuel reforms (partial deregulation of diesel and raising the cap on LPG cylinders).

Meanwhile, all the aam aadmi is concerned about is how his life is going to be impacted by the outcome of the budget like the income tax slab and announcement in the special category (farmer loans, gender based rebates and old age benefits).

Here is a sneak peek into the common man’s expectations from the union budget 2013-14.

Tax Slab

The basic slab for income tax was raised to Rs 2 lakhs from the current Rs. 1.8 lakhs that led to a savings of Rs 2,000 for all taxpayers earning below Rs 5 lakh per annum.

The salaried class is expecting the basic tax slab to be increased from the existing two lakhs to three lakhs per annum. Faizan Siddiqui, a chartered accountant says, “This year the Direct Tax Code (DTC) should be implemented. Tax slab should be hiked to minimum three lakhs in a year. Inflation has made a big hole in our pockets. Sustaining oneself amidst such high inflation is a big challenge in metro cities.”

While the salaried class is demanding a tax slab beyond rupees two lakh, senior citizens are also expecting the existing limit be hiked. From the current two lakh fifty thousand limit, senior citizens want that the slab should be hiked to rupees four lakh per year. Retired SBI Manager Ashok Rawat says, “We are leading a retired life and are heavily dependent on our pensions. There is no other source of earning for us. I have married off two daughters. My housing loan takes a huge chunk of my pension. A mere two lakh fifty thousand bracket does no good to me and my family”.


Owing to the rise in fuel costs the conveyance allowance should also be hiked to minimum Rs 2,000 which is currently at Rs 800 per month. The transport allowance is granted to the employee to meet his conveyance expenditure.

Similarly, the educational allowance given to employer per month per child (upto two childern) should be hiked drastically. The allowance is currently a meagre Rs 100. This should be raised to minimum Rs 1000.


The government could look at the rebate on interest on home loan which is currently capped at 1.5 Lakh. Those wanting to get rebate under housing loan demand that the amount should be raised to minimum 3 lakh. There is demand from a wider section that a separate provision should be made for the principal loan amount which currently is included in 80C (under which maximum limit is one lakh all inclusive).

Meanwhile, the students also have to bear the brunt of higher loan regime. Shashank Kumar Shah, a final year BBA student had this to say - “Today it is easy to buy a car than availing education in India. I have gone to at least seven banks and tallied all the loan rates. At such high rate of education loan, I can’t think of pursuing my career ahead. Government should think of students because we are the future of this country. The loan rates should be substantially reduced.”

A PHD scholar at Tata Institute of Social Science, Asha Singh feels, “I am a JRF qualified research scholar. The remuneration that I get is very meagre. It is not enough to sustain at such amount because my research demands a lot of travelling.

Senior Citizens

Government could also look at hiking the tax limit for the pensioners who also fall in the same bracket of savings under 80C wherein the limit is one lakh rupees. “The limit should be hiked to minimum 3 lakh rupees for pensioners,” says Ashok Rawat. Many senior citizens (above 80 years), who fall under a tax bracket of rupees five lakh feel that the limit should be raised to rupees ten lakh.

Health and Insurance

The medical insurance premium limit which is rupees fifteen thousand currently can be hiked to rupees thirty thousand.

Income on Bank savings account

Last year, the government had announced that income on interest of bank savings account (in post office, co-operative bank, bank account) upto rupees ten thousand will not be taxable. Here, a thought can be given to increasing the interest limit on such saving accounts to minimum twenty five thousand.

Fuel Parity

The cap on number of subsidised cylinders has not gone down well for those at the helm of managing the kitchen as well as the Opposition. Though the union government has hiked the cap of subsidised cylinders from 6 per household per year, homemakers feel that this is too less to run the household and would like it to be hiked to atleast 12 cylinders per household per year.

One hopes that Finance Minister P Chidambaram’s Budget 2013 will be more than mere promises and is able to give more headroom to the common man who is already reeling under spiralling price rise.

First Published: Thursday, January 31, 2013, 12:52


Salary person other than govt ``When we are on the job,we are paying Income Tax agtSalary,what when we are not on the job,will the govt help us,because we people have no saving,due to increase prices of the necessary thing day by day,and monthly pension in between (500 to 2000)So Mr (FM)please think for the private Salary person-Y.S.BAKSHI -DELHI
Senior citizens form around 12% papulation and their voting status is more than 230% (0% of them are below poverty line Payment of Rs 400 pm is too low and deserve to be raised to RS 1500pm Many states do not pay their part GOVT should arrange payment direct to beneficiary by new method by transfer and recovery the states contribution from the sum being sent by GOVTin next payment-K G SASIKUMAR -Davangere city
What more bitter is left to give to common men -manoj -Muzaffarnagar
If the govt really wants a common man to find some relief in the economy which is badly effected by corruption & un-accounted govt expenditures, they should modify the old IT rules Most of the existing rules are as old as 1998 Some of them which have become irrelevant are: 1 Medical tax free Expenses: Rs 15000/- pa for a family 2 Education allowance of Rs 100/- per month per kid 3 Conveyance allowance of Rs 800/- per month 4 total exemptions of only rs 1 lakhs in 80C (including PF, PPF, House Loan principle, VPF, LIC, ULIPs etc) & what not Are these clauses still relevant when the inflation has destroyed everbody, home loan rates are around 11-12%, medical & education expenses are so high dear FM, please think of a common man also who is funding your salary through taxes-Nitin -New Delhi
The Union Finance Minister P Chidambaram will be tabling the Union Financial Budget 2013-14 within few Days in Parliament The Indian Masses have lot of expectations that Whether the Government will levy Tax or Cess on Agriculture Income As India is a Developing Country the Freebies should go and the Union Government should focus its vision on Literacy Drive , Health Facilties , providing Basic Civic Amenities , Infrastructure Development and Above all How to achieve the Projected target of Economy Growth ? Really a Financial Budget that is just before the Parliament Elections and Assembly Elections in Nine States No Doubt the Indian Masses have lot of expectations but the persons who are Senior Citizens and are businessman and paid Income Tax for more then Forty Years and are living in dilemma the Union Government should allow Pension scheme to all those who are above the Age of Seventy and have Paid Income Tax for more then Forty Years as Social Security -RAJAT KUMAR MOHINDRU -JALANDHAR CITY.PUNJAB
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