New Delhi: A day ahead of the Union Budget 2013, speculations are that Finance Minister P Chidambaram is likely to present a political budget ahead of the polls. But the question is whether it will reduce taxes for the aam aadmi.
CNN-IBN's 'Axe the Tax' campaign reached Chidambaram listing five suggestions by the citizens for this Budget. Th suggestions include:
- Increase tax exemption limit under Section 80C to a minimum Rs 2 lakh. The Rs 1 lakh limit was fixed 10 years ago.
- The limit for claiming deduction on interest on housing loan needs to be revised to between Rs 2 to 3 lakh. The limit is currently Rs 1.5 lakh set in 2001.
- The Rs 15,000 exemption limit for medical reimbursements should be hiked to Rs 50,000 given rising medical costs. Also, a separate deduction for education expenses should be allowed. It is presently part of Section 80C, which includes all other savings.
- Education allowance given by an employer should also be raised to at least Rs 2,500.
- More sops for senior citizens. The tax exemption limit of Rs 5 lakh should be applicable to anyone over the age of 60. Also, no tax should be charged on bank interest earned by a senior citizen.