Budget 2019: These key announcements can make Nirmala Sitharaman a common man's finance minister
The rise in tax deduction under Section 80(C), rise in home loan interest deduction under Section 24, rise in the ceiling for ESIC contribution are some common demands of the common man from budget 2019.
Budget 2019 is fast approaching and the finance minister has loads of demands from various sectors as well as from the common man, who falls in the highest bracket of taxpayers. Generally, a budget is good or bad depending upon the reaction of the common man because it's the common man whose reaction matters the most for a democratically elected government in any part of the world. Since the interim budget had loads of announcements for the common man or the salaried class, they are expecting those interim announcements in a more concrete manner from the Modi 2.0 government's maiden budget. The Modi 2.0 government has an idea about the rise in expectations of the common man from the union budget 2019.
Speaking on the common man's pressure that the Modi 2.0 government has to cope with the budget 2019 CS Sudheer, CEO and Founder at IndianMoney.com said, "Rise in tax deduction to Rs 2 lakh under Section 80(C), rise in home loan interest deduction under Section 24 from Rs 2 Lakhs to Rs 3 Lakhs, rise in ceiling for ESIC contribution to Rs 25,000, reduction in corporate tax, address to the NBFC funding crisis etc., are some expectations that if the finance minister meets, would lead to the benefit of both common man and the industries leading to job creations as well."
See Zee Business video below:
टैक्स को लेकर यदि आपकी भी है कोई मांग तो जुड़िए ज़ी बिज़नेस की इस मुहिम से.. वित्त मंत्री जी टैक्स घटाओ #TaxGhataoFMZee इस हैशटैग के साथ बनाए एक 10 सेकेंड का वीडियो, कहें अपनी बात और हम पहुंचाएंगे आपकी आवाज वित्त मंत्रालय तक..@AnilSinghviZEE @PMOIndia @FinMinIndia @nsitharaman pic.twitter.com/ec6FLDxkaD
— Zee Business (@ZeeBusiness) June 13, 2019
Asked about the major demands if that is met in budget 2019, which will work as a huge boost for the common man, CS Sudheer listed the following key demands of the public in general:
1] Raising Section 80(C) tax deduction to at least Rs 2 Lakhs to encourage savings and investments. This will help save around Rs 2,500 to Rs 15,000 depending on applicable income tax slabs;
2] The standard deduction must be raised to Rs 1 Lakh a year to be meaningful. The Finance Minister must include slabs in standard deduction;
3] Rise in TDS threshold on interest on bank and post office deposits to Rs 50,000 a year for all citizens;
4] The tax department should not reopen cases beyond 4 years. This will reduce litigation and bring down the load on the tax department;
5] Rise in the ceiling for ESIC contribution to Rs 25,000;
6] Rise in upper age limit under PM-SYM to bring more workers under the scheme;
7] Rise in home loan interest deduction under Section 24 from Rs 2 Lakhs to Rs 3 Lakhs. Additional sops for first-time home buyers;
8] Address to the funding crisis in NBFCs to boost consumer demand;
9] Reduction in corporate tax rate from 30 pct to 25 pct;
10] Re-introduction of tax-free bonds to raise capital to boost Infrastructure;
11] Rise in Section 80D tax benefits on health insurance from Rs 25,000 to Rs 30,000 for people under 60 years. Reduction in GST on health insurance premiums from 18 per cent to 5 per cent. Tax deductions for preventive healthcare;
12] Introduction of a separate Section for term life insurance plans (pure protection plans). Reduction in GST on term life premiums to 5 pct; and
13] Tax exemption on pension plans that would help life insurers.
So, let's see how many of these demands from the common man are met in budget 2019.