Budget 2012: Impact on Common Man's Wallet
2. Reduction marginal Tax rates:
The maximum marginal income tax rate for individuals is 30 percent for 
8,00,000 which when to compared to other countries is much high. A possible reduction to 25 percent will boost the confidence of the common man and also the income slab at which the tax rates are applied needs to be increased to 10,00,000.
3. Housing exemption:
The interest exemption rate today is 1,50,000 and the housing loan interest is between 10 to 11 percent. So supposedly a person wants a housing loan of 15 lakh then according to the interest exemption limit of 10 percent about 1,50,000 goes away in paying the interest. High inflation has increased the rate of interest; the housing cost has also gone up substantially. So the limit has to be increased substantially because we are at 1,50,000 for many-many years now.
8,00,000 which when to compared to other countries is much high. A possible reduction to 25 percent will boost the confidence of the common man and also the income slab at which the tax rates are applied needs to be increased to 10,00,000.
3. Housing exemption:
The interest exemption rate today is 1,50,000 and the housing loan interest is between 10 to 11 percent. So supposedly a person wants a housing loan of 15 lakh then according to the interest exemption limit of 10 percent about 1,50,000 goes away in paying the interest. High inflation has increased the rate of interest; the housing cost has also gone up substantially. So the limit has to be increased substantially because we are at 1,50,000 for many-many years now.
