Budget 2016: Salaried class expects hike in allowances

Zee Media Bureau

New Delhi: Be it tax exemption, hiking the transport allowances, increasing the rebate cap on home loans –the decision of the Finance Minister will be closely watched by one and all.

The salaried class expects hike in both transport and Children education allowances.

The transportation allowances granted by the employer to his/her employees for commuting between the place of work and residence is tax-free to the extent of Rs 1,600 per month.

Salaried class feels that this limit needs to be revised upwards to at least Rs 3,000 per month, given the rising commuting costs.

The education sector in India is growing at a phenomenal rate but it still needs significant attention, support and backing.

Education allowance is currently exempted up to Rs 100 per month per child for a maximum of 2 children. This should see a change of up to a minimum of Rs 1,000.