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Tuesday, May 17, 2011

TAX RELIEF FOR INDIVIDUALS OR RULES

Tax relief for individuals, inflation 'a concern
As he had highlighted in the Economic Survey tabled in Parliament, Finance Minister Sri Pranab Mukherjee while presenting the Union Budget on growth in 2010-11 has been broad-based but inflation continues to remain a concern.

Finance minister however exuded confidence that the RBI's monetary policy would lead to moderation in inflation in the coming months. Finance minister also put emphasis on increasing agricultural productivity to curb food inflation.
The Finance Minister did not disappoint individual tax payers either and raised the threshold income tax limit to Rs. 1.8 lakh from the present Rs. 1.6 lakh. This now becomes uniform for both men and women.
He brought down the eligibility age for senior citizen's tax exemption to 60 years from 65. Also announced that exemption for senior citizens would be Rs.2.5 lakh from the present Rs. 2.4 lakh.
He also announced a special category of tax-paying senior citizens. Those 80 or above would get an exemption of Rs. 5 lakh. Last year had been a remarkable financial year and that the Indian economy was expected to grow steadily at 9 to 10 per cent.

Highlights of the Budget
No filing of tax returns if salary is only income
New Delhi: In a big relief from cumbersome tax filing process for the salaried class, Finance Minister Pranab Mukherjee today proposed to exempt them from filing tax returns unless they have other sources of income.
The government will be issuing a notification exempting ''classes of persons'' from the requirement of furnishing income tax returns, said the Memorandum to the Finance Bill 2011.
The decision, which will come into effect from June 1, 2011, will reduce the compliance burden on small taxpayers, it added.

Salaried taxpayers who do not have other sources of income and whose incomes are subject to Tax Deduction at Source (TDS) will be excluded from filing returns.

Therefore, in cases where there is no other source of income, filing of a return is duplication of existing information. Every person whose income exceeds the taxable limit is required to file return of income.

There was no hike in the prices of daily use items as well as air conditioners and mobiles this was the general reaction to the union budget by most housewives already battling high food prices. But some are sore over increased taxes on branded clothes and jewellery.
Milk, vegetables and other consumer items are already on the rise. Thankfully, there was no rise this year.
It's also important to see the finance minister take note of housewives, after the corporate sector and tax payers' needs. We are the real recipients of the effects of any inflation that takes place in daily consumer goods.
According to the union budget, items including low-end housing loans, diapers and sanitary napkins, homeopathic medicines, agarbattis, pistachio, and raw silk materials have become cheaper.
We are relieved that prices of essential household commodities have not gone up. Moreover, as the summers are fast approaching the slashing of prices of air conditioners is good news.
However, not all homemakers are happy as many found the hike in prices of branded jewellery and clothing uncalled for.
This is something all women should oppose, and not just housewives.
The inflation is so much, we think twice before buying anything, and now with this hike we will have to think many times before going for shopping. Some were upset that meals at air conditioned restaurants serving liquor will be dearer.
Almost all good restaurants serve liquor and they are family restaurants, so the hike simply means every meal out will be costlier. The best thing about the budget is that legal services will be expensive, we may expect lesser divorces now. Consumer durables like TV, fridge, washing machines did not witness any hike or decrease in prices.

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