The union budget 2017 will be declared by the finance Minister as on 1st February, 2017. There are lots of expectations of a tax payer in relation to a union budget 2017 which are discussed below-

  • According to the taxpayers, section 80 TTA deduction that applies on interest on saving account of a bank be extended on to the fixed deposit interest.
  • Removal of tax on the income actually not received by an individual. For example – A residential property own by an individual apart from the property which is self occupied, have to pay tax on notional rent received from the additional property.
  • The leave travel allowances exemption should be extended to international travel as well.
  • The limit to pay advance tax should be extended from Rs. 10000.
  • The limit for the deduction in relation to the investment in bonds for long term period should be at least Rs. 5000.
  • About 80 percent of the tax payers are closed down without receiving refund from the government. Finance Minister should make a note of it.
  • It is necessary that the tax brackets of the taxpayer need to be adjusted with inflation.
  • The standard deductions need to be increased.
  • There is a need to change the deductions relating to the medical expenses.
  • There should be increase in the exemption limit of estate tax.
  • Taxpayer always looks for the different ways to save the tax. He looks for more exemption limit on the income that he earns.
  • There should be least restrictions on the taxpayer. More number of taxes is responsible for restrictions on the taxpayer.
  • Fewer restrictions on various duties are required to be imposed by the government. Tax payer expects good amount of interest on his fixed deposit and saving account. He expects low rate of interest on housing loan. This is normally what we all think as a tax payer!
  • There is a necessity to bring down the rate of tax in order to make India, a competitive country.
  • It is necessary to focus more on job, agriculture and to expand the method of digital payment.
  • More awareness about the agriculture need to be created among the people.
  • There is a necessity to harmonize the custom duty so as to ensure the economic development of a country.
  • The important aim is to improve the condition of the people working in backward areas thereby, improving the economic condition of India.
  • The taxpayers expect that Finance Minister should focus on widening the tax slab rate of an individual. There has been drastic rise in the cost of living of an Individual, thereby increasing the need to raise the exemption limit.
  • Provisions need to be made for those living in rented houses. Where in the metros, the HRA exemption is 50 percent of basic salary, the same need to be extended to 2 tier cities.
  • It is necessary to equip the health care sector by improving the livelihood of population in rural areas. The medical reimbursement which is Rs. 15000 p.a should be doubled by considering the increasing cost of health care.
  • There is a need to increase the deductions u/s 80 C from 1.5 lakhs to 2 lakhs.
  • There is a need to amend section 192 as well.
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