Mahesh Kumar
The expectations from Budget on Income Tax by most taxpayers are belied upon since no significant benefits are given. The financial hardships faced by tax payers, especially middle class, are not accounted for in any way.
The exemption limit is not raised to suitable amount – a minor relief of 5% for an income up to Rs 5 lakh by a reduction in tax rate from 10% to 5% is inadequate. Senior Citizens and Super Senior Citizens (above 80 years) will not get its full extra benefit of Rs 12,500 on their Income Tax liability since their exemption limit of Rs 3 lakh and Rs 5 lakh is not increased at all. Who cares for Senior Citizens who need the most cash in hand to survive in this ever increasing inflationary trend? Also Senior Citizens need relief from Tax Deduction at Source (TDS) Rules. At present there is no requirement for Advance Tax by Senior Citizens – same way relief is required for abolishing the requirement TDS and of filing Form 15H by senior citizens.
What is provided for stimulating savings by tax payers?
The proposed one-page Saral form for tax payers, having no business income to file Income Tax return up to an income of Rs 5 lakh, must be extended to all tax payers.
The Maximum Donation receivable from unknown source by political party will be Rs 2000. It should be made nil-Zero; as it is seen in the past that cash collections in crores of rupees are claimed as received in smaller amounts from crores of its recipients. This needs to be plugged in – checked for ever. Otherwise its purpose is defeated.
The proposed fee for delay in filing Income Tax return of Rs 5000 – after due date till December and Rs10,000 in all other cases (except Rs 1000 fine for total income up to Rs 5 lakh) is too harsh. This will discourage to file IT returns if by mistake or other causes beyond an assessee control — who failed to file Income Tax return before due date. Also government’s objective of filing maximum returns shall hit badly. This section must be dropped for better and more tax compliance.
