What will Union Budget 2015 have in store for salaried individuals?
- Sumit Bansal
Having raised the basic exemption limit, enhancement deduction of housing interest and deduction under section 80C last year, this year we do not expect much change in the tax rates. Since this is the first full-fledged Budget of this government, one may expect changes more towards rationalisation of provisions and tightening of compliances.
There are several allowances such as children’s education allowance, hostel allowance, transport allowance, medical reimbursement etc which are exempt from tax up to certain limits. But such limits require a revision as they were set several years back. Allowing leave travel exemption for every year and also covering foreign trips to be eligible for LTA exemption is something salaried class has been awaiting for a long time. Then reverting to the old regime of one point taxation at the time of sale of shares in case of ESOP (employee stock option plan) is likely to help companies to hire and retain talented skill set, particularly in the light of the Make in India vision.
Declining interest rates and increased medical cost is really causing stress for senior citizens. Special deduction for their interest income and routine medical expenses will really give them the relief they are expecting. Women tax payers too may find some silver lining in this Budget such as higher slab or special deduction.
Simpler returns forms particularly for the lower income group, dispensation of sending the form ITR V to Bangalore, guidelines for standardisation of scrutiny of tax returns, timely refunds etc are some of the asks of the taxpayers to find a tax-friendly environment.