Comments on Budget: Angel Broking

The budget has given a significant boost by putting more money in the hands of the middle class tax payers. It has been proposed that Individual tax payer having taxable annual income upto ₹5 lakhs shall get full tax rebate. In addition, the standard deduction limit has also been increased to ₹50,000 per year as against ₹40,000 currently. The overall limit under Section 80C and Section 24 for interest on home loan have been kept constant. However, since the rebate up to ₹5 lakhs is on taxable income, your actual exempt income can be ₹9,50,000 assuming that you utilize your Section 80C investments ₹1,50,000, NPS limit ₹50,000 and the home loan interest limit ₹ 2,00,000 to the fullest. Also the concept of notional rent on second home has been scrapped. TDS exemption limit on bank and post office deposits have been increased from ₹10,000 to ₹40,000 per year thereby easing tax administration for small savers. But the biggest change is on the proposed changes in tax administration over the next 2 years wherein all tax returns will be processed in 24 hours and the refunds will be processed simultaneously. It is definitely a significant budget from the income tax perspective.”

 

Mr. Viabhav Agrawal, VP- Head of Research and ARQ, Angel Broking