Well like every year , this year too 28th Feb 11 was one of the most awaited days of the year. Everybody was waiting to see what our beloved FM dishes out to common taxpayers via his budget for FY11-12.
The budget overall hasn't done much to enthuse common man. There are no major tax breaks for majority of the junta . But, he has done few things which we need to take note of :-
1. Increased tax exemption limit for male to Rs 1.8 Lakhs : The tax exemption limit has been increased by Rs 20000 from 1.6 Lacs last year to 1.8 Lacs this year. This is only for males as the tax exemption limit for female taxpayers is already at 1.9 lacs. The additional relief will save 2000 rupees for everyone who falls in ta bracket. Small relief, but, relief nonetheless.
2. No need to file ITR for salaried people: Pranab Da has also mandated that those salaried people whose annual income is less than Rs 5 lacs/annum need not file ITR separately. The same will be done by their company. They can decalrae their additional income like FD interest income etc to the employer who will accordingly deduct TDS and file return.
3. No Tax till Rs 5 lac income for Very Senior Citizen: In an unprecedented move, Finance Minister has introduced an absolutely new segment in the income tax viz that of Very Senior Citizen. All those taxpayers who are above 80 years of age will be classified as very senior citizen and they wont have to pay any tax till the annual income of RS 5 lacs. This is a huge step taken for welfare of very senior citizens since in India, we dont have any social security and older people have to spend considerably on medical care and as such this was required. Here is thumbs up to Mr FM for doing this.
4. Tax Relief under Infrastructure Bond Investment Extended : The Tax relief offered on investing upto Rs 20000 in infrastructure bonds like IDBI, L&T etc which was introduced in FY10-11 has been enxtended for FY11-12 too. So taxpayers can continue to invest in this and save taxes upto Rs6180 under this option.
Besides, these there is nothing much to cheer about for normal taxpayer in this years budget. However, with DTC proposed to be launched in FY12-13, things will be much better and simpler for all taxpayers.
I only hope that Mr FM is able to deliver on his promise of making DTC operational from 1st April 2012. More Power to you Mr. FM.!!