Tax slab increase, fuel price cut top wishlist of salaried

By Harsh Roongta, CEO, Apnapsia.com

For the middle class person the wish list would encompass anything that would tame the demon of inflation or leave more in the hands of the person to deal with the demon of inflation.

1) Increase in exemption limit from 1.60 lakhs to Rs 2 lakhs and change in the slabs of taxation in line with what is recommended in the Direct Tax Code namely

Rs 2 lakhs - 5 lakhs - 10% (current 1.60 lakhs to Rs 5 lakhs)
Rs 5 lakhs - 10 lakhs - Rs. 30,000 plus 20% on the amount that exceeds Rs 5 lakhs. (current Rs. 5 lakhs - Rs 8 lakhs)
Rs. 10 lakhs Plus - Rs. 1,30,000 plus 30% on the amount that exceeds Rs 10 Lakhs (Current Rs 8 lakhs plus)

This would provide slight relief to the entire middle class by leaving them with a little more disposable income in their hands

2) Reduction in Fuel costs - probably by reduction in tax/duties by both from the Central Government and State Government.

3) Increase in the limit for no-collateral education loan scheme from Rs. 4 lakhs to Rs. 10 Lakhs and better implementation of the scheme to ensure easier availability including issuance of a list of courses (vocational as well as degree) that qualify for the scheme to remove discretionary power in the hands of local bank officials.

4) A paid for group insurance scheme such as Rashtriya Swasthya Bima Yojana which provides cover for at least around Rs. 1 lakh for a family with very low exclusions. This scheme should be aimed at the lower middle classes in the non metro urban, semi urban and rural areas. Enrollment can be through locality management groups/mohalla committees.