Indore: 'Increase I-T Exemption Limit On Salary & Housing Loan Interest'

Indore: 'Increase I-T Exemption Limit On Salary & Housing Loan Interest'

CAs and experts of trade and industry express their hopes from the Union Budget

Staff ReporterUpdated: Thursday, February 01, 2024, 09:58 AM IST
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Indore (Madhya Pradesh): Looking at the rise in inflation there is a strong need to provide relief to the middle class. Though it is an interim budget but since it comes ahead of the general election the feeling is that there must be increase in the existing exemption limit for income tax and on interest on housing loan. 

On the eve of the Interim Union Budget for Financial Year 2024-25 to be presented by Union Finance Minister Nirmala Sitharaman on Thursday in Lok Sabha, Free Press talked to CAs and experts of trade and industry to know their wish list. Most of them opined that since this is an interim budget, there should not be more expectations. 

CA Kirti Joshi, former chairman of CA Indore branch of the Institute of Chartered Accountants of India (ICAI) says that the current limit for tax-free income is Rs 2.5 lakh annually, which has remained unchanged since the fiscal year 2014-15. It should be increased to Rs 5 lakh.

The maximum deduction under Section 24(b) for home loan interest payments is currently Rs 2 lakh, this should be raised to Rs 3 lakh due to the doubling of property values.

-The standard deduction for salaried taxpayers is currently Rs 50,000, this should be increased to account for various work-related expenses incurred by employees. The maximum deduction under Section 80C is currently Rs 1.5 lakh, this should be increased to Rs 2.5 lakh or separate sections should be created for tuition fees and life insurance. 

CA Joshi also mentioned a few more points. 

-The interest deduction on home loans should be extended to the year of completion to provide relief to taxpayers, aligning with the EMI payment year.

-The companies should receive tax benefits for spending on various CSR initiatives and these expenses should be treated as business expenses, encouraging greater participation in social welfare programs.

-Only individuals with taxable income should be required to file income tax returns. The threshold for filing should be increased, excluding those with an annual income below Rs 10 lakh.

-The limit for interest deduction on savings accounts should be increased from 10,000 rupees to 50,000 rupees, considering the tax-free nature of such interest income.

Though this an interim budget, thus we should not attach much expectations to it. However, to attract the votes, there may be initiatives. For the sake of companies Minimum Alternate Tax (MAT) and Dividend Distribution Tax (DDT) should be abolished. It’s a kind of double taxation for companies. 

-Goutam Kothari, president Pithampur Aodhyogic Sangathan. 

Despite being an interim budget, it is being presented before the general election, thus there are expectations that it would have something for the middle class. Income tax should be increased as inflation is also up. Also, the exemption on the interest of the Housing loan should also be increased. 

-Sushil Surekha, general secretary Ahilya Chamber of Commerce. 

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