Encourage salaried class

Dear Sir,

 

My Budget wish list is as follows:

 

1. Standard deduction facility which was available to individual tax payers has been withdrawn some time back.  This is to be restored to be on par with business class who have similar facility by way of depreciation.
2. Dearness allowance is granted to working class based on consumer price index.  It is in a way a reimbursement of expenses only. Since the government is not able to contain the rising prices of various commodities, it is better if the dearness allowance itself is completely exempted from payment of income tax.
3. Dividend in shares is exempt from income tax.  However,  interest on bank deposit, post office deposits etc. are taxed fully without any exemption.  Hence, to have a level playing field, these are to be treated on par with dividend.
4. Country wastes lot of oil due to bad roads, traffic jams in cities.  Power sector also needs thrust. Development of  infrastructure like good roads etc. requires crores of rupees.  Hence, government should launch infrastructure bonds  with tax free interest where  investment up to say Rs.1 lac should be allowed under Sec 80C additionally.
5. Salaried class are one of the category who pay prompt income tax.  As a measure of reward to their honesty,  higher IT exemption limit of say, Rs.2.5 lacs is desired.

With regards,

 

B.N.Bharath

Manager (Credit Analyst)

Mid Corporate Regional Office,

State Bank of India, LHO,

Bangalore.

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