Zee Media Bureau
New Delhi: Finance Minister Arun Jaitley is all set to present the Union Budget for 2016 on Monday amidst high expectations that the Budget will be growth-oriented as well as address the investment crisis in the Indian economy.
A lot of hope has been pinned from all quarters on the Narendra Modi-led NDA government.
While the Budget announcement will set the tone of economy for the upcoming fiscal, here is what you can expect from Jaitley.
1. The common man expects the income tax limit to be increased from prevailing Rs 250,000 to Rs 300,000. This would help people save more.
2. Moreover, the working women’s contribution to the national economy is also increasing slowly but steadily. As an incentive, tax exemption for them too needs to be raised to at least Rs 4 lakh.
3. Another very important aspect that the common man will be looking forward to is upgrade in tax exemption limits on interest and principal repayments on housing loans. The deduction for interest on housing loans needs to increase from the current limit of Rs 2 lakh considering the significant rise in rates for residential properties over the past few years. To provide relief to the tax payer this limit should be increased to at least Rs 3 lakh.
4.There is a demand from a wider section that a separate provision should be made for the principal loan amount which is currently included in 80C [under which maximum limit is Rs 1.5 lakh (all inclusive)].
5. At present consolidated deduction of Rs 1.5 lakh is allowed on all long term and short term serving instruments, including provident fund, pension funds, and equity linked savings scheme etc. So expectations are that the allowances exempted from tax are increased along with rise in exemption limits under Sections 80C from the present Rs 1.5 lakh to at least Rs 2.5 lakh.
6. It is also widely expected that the government may come up with the announcement on hiking health insurance premium and payment made on account of preventive health check-up limit in Section 80D.
7. The amount of medical expenses reimbursed by the employer on treatment of employees or their family members is exempted from tax to an extent of Rs 15,000 per annum. The common man will look forward to a change in limit as the present threshold was set way back in 1998.
8. Another major area which the common man associates with is the transportation allowance. It is widely expected that the allowances limit will be revised from the current Rs 1,600.
9. People also expect that education allowance will also see an upward revision from Rs 100 per month per child.
10. It has been reported that government is working on cashless health insurance scheme for senior citizens which may be announced in the upcoming Union Budget 2016-17. This will be eagerly watched by the people.