The article talks about the expectations of common man from the budget this year. Market experts are of the opinion that the focus of the budget this year will be rural economy.
Vaibhav Sankla, Director, H&R Block points out 4 broad pointers that common man is looking for in the budget this year. According to him it’s a wait and watch situation for the common man as to which of these the Finance Minister, Arun Jaitley will fulfill. The 4 broad pointers include housing, tax deductions, essentials and allowances.
The common man expects that the current limit of the deduction for interest on housing loans should be increased from Rs. 2,00,000. This is due to the fact that in metro cities the property prices have shot up.
In the opinion of common man, the current overall ceiling for deductions on long-term saving instruments need to be revised u/s 80C.
The common man feels that he is burdened with multiple taxes. Hence, there should be rationalization of these taxes along with decrease in taxes on products such as life-saving drugs, common food items and others.
The tax exempt limit on certain allowances (by the employer to the employee) have not been revised since the year 1997. Hence, the common man expects this revision in the Union Budget 2016 to be presented on February 29 by the Finance Minister.