Inflation impact: Govt may hike tax exemption limit



Inflation impact: Govt may hike tax exemption limit

New Delhi, Feb 1 (PTI) Tax payers can expect some relief from high inflation in Budget 2011-12 as the government may raise the income tax exemption limit for individuals.

"Finance Minister Pranab Mukherjee is alive to the price situation and its impact on the common man," sources said, adding he would favourably consider the issue of hiking tax exemption limit.

Moreover, they said, as the government is committed to raise the income tax exemption limit from Rs 1.6 lakh per annum to Rs 2 lakh in line with the Direct Taxes Code (DTC) in 2012-13, tax payers could expect at least some relief in the upcoming Budget on February 28.

"The finance ministry would keep in mind the high inflation in the Budget. Since there is no dearness allowance for a vast section of the society, hike in income tax exemption limit is likely," a source told PTI.

Source: PTI

Comments

Anonymous said…
It is welcome if the limit raised upto Rs.2 lakh. It is difficult to manage family life these days due to high price rise.
Anonymous said…
sir,

A mail employee is also having a femail as spouse. Hence the exemption as like as women employees may be allowed to the mail employees also. Other wise the mail employees are getting less net salary than a women employee. The finance ministry may kindly be taken this issue while projecting finance budget in this month.
Anonymous said…
Once more before the budget placement, it is earnestly submitted to FM that kindly realise the price hike and difficulties of single earners to run even a small family is becoming very much difficult. All the public shall be obliged to you if you enhance the limit 3 lakh or no tax upto income of Rs.5 lakhs.
Rahul said…
80 (c) limit should be increased.That's where most of people get hit. As base salary increases , a substantial (if not all) amount under 1 lakh 80 c limit gets covered with PF , Now a days minimal insurance amount doesn't help. Insurance , ULIp also comes under 80 (C). As if this is not enough, Even home loan part also come under 80 c , So essentially you end up saving very less if you compare to what all you have invested under 80 c. More than 90% of investments by a average indian falls under 80 c . 1 lakh limit on 80c is grossly under par.

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