The FM said he found Little room to give away tax revenues or raise tax rates in a constrained economy. So, no major benefits have been provided to the salaried professionals.
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Salaried: The FM said he found little room to give away tax revenues or raise tax rates in a constrained economy. So, no major benefits have been provided to the salaried professionals. The minor benefits like additional credit of Rs. 2000 (to those earning below Rs. 5 Lakh) have been provided to help with the raging inflation, and plus the tax benefits from infrastructure bonds & additional interest payments deduction would aid sectors like real estate & infrastructure which have the potential to drive growth.
Professional: Again, the FM could not provide tax leeway to Professionals due to aforementioned reasons. But, the voluntary service tax compliance scheme provides effective means to non-compliant professionals to get on the right side of the law with zero interest or penalties. This provides the FM a pretty efficient way to widen the tax base to include 10,00,000 registered assesses who do not file returns. Also the surcharge of 10 percent on persons whose taxable income exceeds Rs. 1 crore would be a minor hit to the rich professionals.
Business: This is a negative for Business owners owing to the higher taxes applicable to the rich and super rich. The investment allowance is likely to give a relief to the Businesses that will undergo higher capital expenditure from 1.4.2013 to 31.3.2015.
NRI: Considering the strong Indian liking for Gold, the increase in limit of duty free Gold is seen favorably. Otherwise there is again not much positive for NRIs out of this budget.
Student: While no significant financial provisions exist for students, the investments in the Education sector and focus on skill development would provide a bright future outlook for students.
Home-maker (Women): A major focus towards women empowerment and safety has been highlighted in the budget. This would ensure a better economic and social environment for women, including the single women and widows.
Retired: This budget, unlike earlier budgets, did not provide any additional tax breaks to the senior citizens. But, indirect benefits could be accrued by the renewed focus on women, children & senior citizens
Farmers: Farmers have received significant benefits from the budget, which is justified considering the overall impetus on growth.