Budget Expectations: Changes that salaried class is looking forward to

By Sandeep Nayak, CEO, Centrum Broking

In the foreseeable future one can expect petrol and diesel price revision before the budget. In the budget excise duties may go up on automobiles and other products including consumer durables leading to the burden being passed onto the consumer. Salaried class may look forward to changes in three areas-

a) Change of the minimum exemption for income tax from Rs.1,80,000 to near about Rs.3,00,000. This is something that will add to the disposable income of the salaried individual.

b) Other than the tax exemption limit change, one can look forward to higher rebates on investment into infrastructure bonds which currently enjoy a rebate up to an investment of Rs.20,000. The same may be increased to Rs.50,000.

c) The third area change which can be favorable to a salaried individual coupled with leading to a boost to the housing sector is the increase in exemption of interest paid on loans borrowed for buying houses for self occupation which is currently restricted to Rs.1,50,000 for the year. This limit enhanced to say Rs.3,00,000 could bring additional relief to a salaried individual who has borrowed and invested in a residential house for self occupation.

On the whole these benefits would probably balance the burden caused on a salaried individual when excise duties go up on diesel cars, cigarettes, computers and mobile phones.

The Professional Woman