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Here is a quick snapshot of how the budget impacts the common man.
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1. Exemption limit – to be raised as follows.
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Category
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Exemption Increased By (Rs.)
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Zero Tax Status upto (Rs.)
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Senior Citizen
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15,000
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2,40,000
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Female
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10,000
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1,90,000
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Male
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10,000
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1,60,000
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2. Surcharge – of 10% of total tax to be eliminated.
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3. Section 80DD Deduction in respect of maintenance & medical treatment of dependants with severe disability – limit to be enhanced from current Rs. 75,000 to Rs. 1,00,000
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4. Fringe Benefit Tax (FBT) – on fringe benefits provided by employer to employee, to be abolished
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5. New Pension System (NPS) – Exempt, Exempt, Taxed (EET) method of taxation to continue in the hands of the investor but enhanced tax breaks for the trust managing the NPS to be beneficial to the investor.
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6. Section 80E Deduction for interest paid on education loans – to be available to all fields of study, including vocational studies pursued after schooling.
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7. Donations to electoral trusts – to fetch you 100% deduction against your taxable income.
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8. Commodities Transaction Tax (CTT) – to be abolished
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9. Minimized Tax Compliance – for Small business owners. Declare 8% of their turnover as taxable income & avoid maintaining books of accounts & payment of advance tax.
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10. ITR forms to be made simpler – new i-tax form (Saral – 2) set to make early entry.
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11. Central Processing Centre (CPC) – of income tax department at Bangalore to process all returns filed electronically and physical returns filed in Karnataka. This would enable faster refunds to assessees.
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