GST is on the way and still, there is a lot to improve the statistics as the all of the finance ministry is looking up the best measures to fix the new tax regime in the best possible way. In this year, there is a significant event to take place which will affect many in a similar way, and that is Budget 2017 heading in February. The finance minister Arun Jaitley is expected to make some positive changes to the budget to create some relaxation for the middle and urban class alike. Here are 5 considerations for FM Arun Jaitley’s Budget 2017, keeping the middle-class group in mind:
Extending Tax Slab: The government has been following an income cap of 2.5 Lakh which is used to exempt all the citizens earning below this level. Increasing the limit will give a relief to low earning income group as well as all those youths who have just entered the professionalism and started their careers. Also, the administration should consider the extension of the old tax slabs which are taxed on annual income, as of now 10 percent is charged on annual income of Rs 2.5 lakh to Rs 5 lakh, 20 per cent on Rs 5 lakh to Rs 10 lakh and 30 per cent on income above Rs 10 lakh. The slab can extend to give a wider base for the low-income group.
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Allowances For Low-Wage workers: Even the salaried professional are getting a various allowance from the service industry, the long ago setup of allowance is now faded in front of current expense oriented economy which is shredded with inflation. Various allowance and benefits like children’s education, conveyance, medical reimbursement, house rent and leave travel must get some modification and should be revised accordingly.
Another point for improvement comes from an increase in the deduction under the Section 80C which allows savings from Rs 150,000 to Rs 300,000 bracket. This will eventually make an increase in the household saving and can give a chance to investment for further usage while the exemption limit for senior citizens must also be increased from 3 Lakh to give them chance for old age security.
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Lower Home Loan Interest Rates: In the current scenario, the home loans, and interest subsidy is given by prime minister Narendra Modi has been given at 3 per cent and 4 per cent for loans of up to Rs 12 lakh and Rs 9 lakh, respectively, but if this interest tends to decrease, for urban cities then it can be very useful and fruitful for the metro city home buyers.
Deduction of EMIs at Early Stage: In many ways, deduction of home loan EMIs also play a vital role in maintaining the financial budget of each and every household and this time if the consideration makes up some noteworthy, then higher deduction on home loan EMIs can be reviewed and for the same cause the deductions on home loan EMIs should also initiate on an early basis right from the first installment.
