Regarding Budget Wishlist

Sir,

 

Some of the changes that I would like to see in the new budget 2009 would be as follows

 

1.  Increasing the deduction under section 80D for mediclaim policies to at least Rs. 25000 per assessee for all  irrespective of age. Rising cost of medical treatment is making insurance mandatory for many and the investment in that sector will increase in years to come. It is only natural that the common man also gets  some advantage in taxation.

2.  Increasing the exemption limit for Income tax to at least Rs. 3 Lakhs.  The middle class, especially the salaried class is the one most affected in these times especially with increase in cost of education of kids, medical expenses of self and aged dependents and rising cost of commodities. It is but natural for them to seek some solace in the form of this exemption.

3. Increase the exemption in 80 C to Rs. 2 Lakhs to induce people to save more and invest in instruments such as PPF, NSC, Pension shcemes etc.

4.  Give  a special exemption of , say, Rs.40,000 per year to assessees (not dependents) sufferring from designated chronic illnesses like Heart disease, Cancer, Chronic Kidney disease and Stroke as these diseases definitely decrease the earning potential of the individuals.

5.  Give maximum tax concession for the import of life saving and diagnostic medical equipment.

6. Give a specific exemption of Rs. 40,000 or 50,000 for interests from Bank deposits because the retired elderly assessees rely heavily on the interests from bank deposits for their post retirement years and medical expenses.

7. Re-introduce the Standard deduction of at least Rs. 50,000 for the salaried class, as they don't enjoy the deduction of expenses, depreciation etc. like the other professionals or business class.

8. Wealth tax especially of Land holdings, Commercial buildings, second house etc may be increased marginally to generate more revenues.