3. It’s Budget time again and expectations of the
common man are high even as the P
Chidambaram, the Finance Minister of India,
tries to deliver to the expectations of the ‘aam
admi’ (the common people) in the annual Union
Budget.
4. The union budget for the FY 2013-14 will be
presented before the Parliament on last week of
Feb. 2013.
Budget 2013-14 can be termed as the budget of
aspirations since this is the last budget that the
ruling UPA-2 government is going to announce.
The number of amendments expected and
predicted by analysts in the Union Budget for 2013-
2014.
Expectations of the common man are rising from
this year's Union Budget.
What will happen eventually will unfold on the day
of budget !
5. Here is a sneak peek into the common man’s
expectations from the union budget 2013-14.
Liberalize tax slabs
6. The basic slab for income tax was raised to Rs 2
lakhs from the current Rs. 1.8 lakhs that led to a
savings of Rs 2,000 for all taxpayers earning below
Rs 5 lakh per annum.
The salaried class is expecting the basic tax slab to
be increased from the existing 2 lakh to 3 lakh per
annum.
senior citizens are also expecting the existing limit
be hiked from the current 2,50,000 limit to rupees 4
lakh per year.
source: moneycontrol.com, yahoo!indiafinance, economictimes.com
8. HRA(House Rent Allowance )
Current -House rent paid minus 10 % of salary
-50% of salary in case of rented house
situated in metro city.
-40 % of salary ,if rented house is situated in
any other places
Expectation –it is expected to be changed this year
Transport Allowance
Current- exempted upto Rs.800 per month max.
Expectation - should be raised to minimum Rs 2000.
9. Children Education allowance
Current - Rs 100 per month per child up to
max of 2 child is exempted
Expectation - should be raised to minimum Rs
1000.
Children hostel allowance
Current - Rs 300 per month per child up to
maximum of two child is exempted
Expectation - should be raised to minimum Rs
3000
Source: moneycontrol.com yahoo!india finance, economictimes.com
11. Considering the rising prices of real estate, the
common man’s dream home still remains a dream
The government may allow deduction for interest
during the construction period instead of allowing it
only after the construction is complete.
The income tax exemption on payment of interest
on housing loans may be raised from current Rs 1.5
lakh to Rs 3 lakh for a self-occupied property.
source: moneycontrol.com, yahoo!india finance, economictimes.com
13. In current year up to rupees 10,000 will not be
taxable on interest of bank savings account .
Here, a thought can be given to increasing the
interest limit on such saving accounts to minimum
Rs.25,000.
source: moneycontrol.com yahoo!india finance, economictimes.com
15. Section 80C of the Income-tax Act, 1961 allows
deduction of up to Rs 100,000 for investments in a
host of specified schemes like mutual funds, fixed
deposits, provident fund, etc
It may be expected that this section brings within its
ambit many future benefits, the limit may be raised
to Rs 200,000.
source: moneycontrol..com yahoo!india finance, economictimes.com
17. Health insurance premium paid by an individual can
be claimed as a deduction up to Rs 15,000 if the
insurance is for himself, spouse or dependant
children.
Expectations :- Increase the limit of Rs 15,000
to Rs 20,000 for health
insurance premium paid for
self, spouse and dependents
parents;
-Increase the limit for senior
citizens to Rs 25,000, considering
that healthcare costs for senior
citizens are comparatively more
source: moneycontrol.com, yahoo!india finance, economictimes.com
19. The union government has hiked the cap of
subsidised cylinders from 9 per household per year.
Homemakers feel that this is too less to run the
household and would like it to be hiked to atleast 12
cylinders per household per year.
sources: moneycontrol.com, yahoo!india finance, economictimes.com
