Budget terrific for senior citizens, not much for others

The age for senior citizens decreased to 60 from 65. The new category of Very Senior Citizens (for those above 80) has been formed this budget.
 
For others basic exemption slab increased from Rs. 1.60 lakh to Rs. 1.80 lakh. Therefore benefit for all taxpayers is Rs. 2,000 tax saved. For senior citizens, it will be Rs. 1,000 and those above 80 years can save potentially Rs. 26,000 on taxes.
 
The other indirect positive is that foreign investors will now be allowed to invest in domestic mutual funds. This will significantly increase inflows in mutual funds which is a big positive for the stock market. Also, for the salaried class, the FM has announced that salary earners need not file a tax return since TDS is already deducted and filing of return is a duplication of existing information.
 
However, those intending to avail of this facility cannot have income from any other source except salary. Detailed rules and parameters are yet to be announced. There are other miscellaneous announcements like the proposal to launch tax free infrastructure bonds and the launch of an infrastructure debt fund - however details are not out yet.
 
The writer is Director, Wonderland Consultants, a tax and financial planning firm. He may be contacted at sandeep.shanbhag@gmail.com
 

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