Expert Answers: Some relief likely on personal taxes

NO TAXES: Amitabh Singh, Partner & Country Leader for Human Capital, Global Mobility & Employment Taxes, E&Y answers tax-related queries.

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Aarif: I would like to know if there is anything for the salaried class. We would like to rise the cap for medical reimbursement, conveyance and also lunch allowances. These limits have to be increased since the expenses are more in these categories. Also the income tax exception has to be increased considering the cost of living is touching the roof.

Amitabh Singh: I expect some relief on personal taxes keeping in view the rising price levels. However, it is difficult to predict in what mode and manner that will be delivered.

Prashant: What should be the policies to avoid tax evasion and frauds by politicians? How can the government control/detect the fraud of Co-Operative Organisations owned by political leaders?

Amitabh Singh: I presume that by "politicians" we mean the leaders that we ourselves elect. Should we not be more discriminating in whom we elect than leave everything to government policies? At the end, we get the government that we have elected.

Vishvesh: Will the FM include re-payment of loan for purchase of plot under the repayment of housing loan for tax benefit? As the middle class in India cannot afford to buy plot/site and construct immediately, they will have to wait for a couple of years to accumulate funds for acquiring property.

Amitabh Singh: The FM wants people to construct houses and not just buy land and keep as investment or value appreciation. Hence I do not expect any relief limited purely to purchase of plot.

Subramani: Why are these service taxes included? Can’t it be reduced to 4 pc?

Amitabh Singh:As we move towards harmonisation of Good and Services Tax, it is expected that all taxes (VAT, Service Tax, Excise duty) will converge somewhere between 15-20 pc (purely my guess). However, since all these taxes will be mutually off-settable, there need not be any adverse consequence largely.

Abhay Kumar Singh: How will salaried persons be affected or benefited from this Budget?

Amitabh Singh: I expect some benefits, mainly in terms of some reduction in overall taxes (by increasing the slabs or marginally lowering the rates) or increasing the investment limits u/s 80C

Prashant Sinha: What could be the likely Standard Deduction and Tax Slabs this year? Any incentives for people in IT sector?

Amitabh Singh: Please see my earlier responses on these topics.