Budget 2016 Stimulates High Hopes from Common Man

BENGALURU: As the time for announcing the budget is nearing, the general public has laid great expectations from the Finance Minister Arun Jaitley. The Union Budget for the financial year 2016-17 will be presented on February 29.

As the common man keenly waits for the budget, they are expecting to see the net effect of the measures on inflation, education and taxation. With the falling oil prices, the government’s job to make a budget that can satisfy the needs of common man has become an easy task.

Common man has high hopes on change in rate of personal tax. Last year’s budget did not propose any changes in the personal tax rates but this year the common man expects the minimum tax bracket to increase from 2.5 lakh to 3 lakh. For those who are looking for home loans expect an increase in tax deduction limit on home loan interests from the current limit of Rs 2 lakh to Rs 3 lakh. A reduction in TDS rates has also been opined by a panel on income tax laws.

The government should aim at restoring the domestic savings rate that has continually been going down, accelerate financial savings of households. The current manufacturing rates have burdened the consumers specially the middle class; therefore a reduction in manufacturing prices will also give a push to the domestic savings rate.

Be it tax exemption, increasing rebate on home loans, giving subsidies to farmers, the union Budget will be minutely followed by every individual.

Read Also:  U.S. Defence Secretary Ashton Carter May Visit India in May to Sign $2.5 Bn Deal
India Third In World in Issuing Passports after China And U.S.: MEA Official