The Union Budget 2016-17 as expected is against middle class – relief of additional Rs 3000 in income tax for persons having total income up to rupees five lakhs shall be offset from their total income tax saved as they shall be required to pay more on account of an increase in service tax rate for their day-to-day necessary expenditure. In fact their net cash flow shall be much lesser as additional service tax burden is going to be much more than Rs 3000 and in fact whole of middle class is at loss in their net cash inflow on account of this avoidable service tax burden imposed on tax payers.
It is so unfortunate that limits of basic exemptions are not raised even for Senior Citizens. This kind of government’s attitude for Senior Citizens is shameless as Senior Citizens getting additional healthcare cover of Rs 30,000 under the new scheme is not enough. Throughout their life they pay taxes – kiya government martey dam tak tax leti rahegi? Already most of them are financially dependent on their children. Because of tax on their incomes from past savings, most of them have no regular salary/business income, etc. Or it is too meagre to make both ends meet and government makes them pay taxes too. The present basic exemption of rupees three lakhs is not enough for them to survive with dignity.
Amnesty scheme to unearth black money by paying 45% tax is welcome. The govt failed to get foreign account black money. Most politicians have black money and they won’t come up and declare here too. Even others who did not pay taxes in the past at 30% will not find it an attractive rate, lower down to 35% to attract them.
Huge investments in infrastructure are welcome. But when it shall see the light of the day is a policy to wait and watch.
Whatever there is a good of Budget announcements for poor must reach to them? Mostly benefits either do not reach or little is reached to them. Like Modi government showed big dreams to voters – same way is a dream budget – only time will tell if it becomes a reality.
