How will the Budget impact your taxes | Budget Information From Finance department
How will the Budget impact your taxes | Budget Information From Finance department
The finance minister’s task is cut out as far as the country’s finances are concerned. Economists agree that Pranab Mukherjee’s focus should be on fiscal consolidation and reforms.
But for the salaried class, this Budget is about a respite from high inflation. Here’s what most analysts expect the finance minister to do to increase money in the hands of the middle class.
Exemption on income tax: Currently, income up to Rs. 1.60 lakh is exempt from income tax. But in a high inflation scenario, analysts have made a case for increasing the exemption limit. Most analysts expect the finance minister to increase the exemption limit to Rs. 2 lakh.
Deduction of interest payment on housing loan: Analysts have made a case of higher deduction on interest payments on housing loans because of rising home loan rates. Currently, deduction on interest on housing loan stands at Rs. 150000. Mehra says, “There have been delays in completion of housing projects and this has hampered the ability of people from getting deduction from interest rate payments.” According to income tax rules the construction of houses should be completed within three years from the end of the financial year in which capital was borrowed.
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Posted by vijay on Feb 27 2011. Filed under Breaking News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.
