Mumbai: Powai residents Deep and Namritha Kadamba, the couple interviewed by The Free Press Journal in its February 1 edition, are not very happy with the Union Budget. They had hoped for a revision of the current tax slab. Although their wish came true to an extent, the accompanying rider put by the finance minister Nirmala Sitharaman, that the public could opt for the old regime of taxes or the new but in case of the latter, they would have to sacrifice the deductions and exemptions they earlier enjoyed.
Namritha said, “They (the government) have simplified the tax structure, no doubt..but these exemptions and deductions were tax-saving avenues and their cost to company (CTC) break was made in a manner which could give us more tax benefits.
“The slab rates for individuals have now been revised (without considering exemptions and deductions). Further option is also available to individuals to continue with the existing regime.
“So now, the individual taxpayer has to assess which regime is more beneficial to him/her.With deductions under section 80 being scrapped under new regime, there could be a decrease in the amount invested by taxpayers under various government schemes (PPF, NPS, NSC, Sukanya Samriddhi) or insurance (life insurance, medical insurance)”
