Budget 2009-10 Expectation

Budget 2009-10 Expectation

 

1)               Income tax limit be increased to rupees two lakhs. 

 

2)               Standard deduction be reintroduced and raised to Rs. 50,000/-.  Medical ' reimbursement' above Rs. 15,000/- is tax free presently.  Treating 'reimbursement' as income for tax purpose appear illogical as the expenses are incurred out of income and reimbursed out of taxed income. This tax free reimbursement should be without limit or the limit increased to Rupees one lakh.

 

3)               Tax structure, rates, calculations should be simplified.  Let there be simple tax percentages instead of tax, surcharge, education cess etc. as such sub-heads complicate understanding, calculating, accounting & transmitting work.  The clumsy & vegue taxes like FBT, Service Tax etc. be abolished.

 

4)               The tax rules should encourage savings in Govt. instruments by providing proportionately increasing tax benefits.  The Govt. will get direct low cost funds for developmental projects.

 

5)               The salaried class assessee should not file tax return unless there is income other than salary & exemption is claimed.  Instead the IT Authorities should check tax records of employees by rotation of institutions & cities every year, which will be simpler and of greater value than present percentage checks of tax returns.

 

6)               Education loan taken for one's employee should be made eligible for tax exemption, unlike the present rule exempting the education loan availed from an institution registered under BR Act only. 

 

7)               The Co-operative banks / institutions should be free from Income Tax.

 

 

Mohan Koparkar

Chairman,

NABARD Employees' Co-op.

Credit Society Ltd., Mumbai,

Plot No. C-24,G-Block, 1^st floor,

E-Wing, Bandra-Kurla Complex,

Bandra (E), Mumbai - 400 051.

Tel. No.26530076/77