[NetfreakBombay]

Originally Posted by deky

But the point is that most of the middle class, salaried employees do invest worth Rs 1 lakh to save on income tax. Hence they still will have to file ITR to get the refund of whatever investments they have done?

Am I right?

They should not have to, their employer should deduct less TDS.

If these investments save 10k in Tax and employee declares that to employer; employer will consider that while deciding TDS amount.

[BaCkSeAtDrIVeR]

1, The hike in basic exemption rate is eye wash; it does not cover even edjust for inflation. A cuppa of tea used to cost INR 3 at beginning of this fin year. Today, I was asked to pay INR 6 for the same cuppa.

2. I have only salary income for past 5 years. I have invested 1 Lakh each for past 5 years in 80C instruments alone. 80C savings, but other savings yield more than 10 - 15% of my annual income. The exemption from filing returns is only a joke; no use after 3-5 eyars of gainful employment.

[akj53]

Shocker for auto industry:

The new definition in the budget disallows manufacturers a concessional 10% import duty for cars and mobikes where either the engine, gearbox, transmission or chasis come in as a pre assembly form. Effectively, this would increase import duty on cars as varied as a Hyundai i20 diesel, Toyota Innova to a top of the line BMW 5 series, to 60%, making them way more expensive.

"It appears very restrictive and all CKD cars in the country would get badly impacted," said a senior SIAM official after a hurriedly convened executive committee meeting in the evening. "To us, it seems to be an error leading to misinterpretation. But if this is deliberate, then everybody would have to change their production plan causing a disruption that may carry on for months."*****

The worst affected could be the big three of the luxury car segment, BMW, Audi and Mercedes, who either import Complete Built Units (CBU) or produce cars under the CKD route. The three firms witnessed stratospheric growth in sales of upto 70% in 2010, as they expanded their product range and started assembling more cars in India.*

Unreal Tax return filing exemption:

Technically even bank interest on FD and saving account is an extra income, which every person will have. So practically nobody gets the exemption and it is just a headline grabbing exercise (in my opinion).

Cruel Service tax on AC Hospitals and Pathological test.

All netas and babus enjoy free and best of the medical facilities at public expense. Yet they think that getting treated in a decent, clean and air conditioned hospital is a luxury for the tax paying public. Don't they know the pathetic condition of government hospitals. This is a disgusting and senseless tax imposition and FM should be ashamed for this. On the other hand he should have banned the pathology labs from paying commission to doctors, which would have brought down the pathology test rates.

Food, Home, Education and Health are the basic requirements and rights of every citizen and these sectors should be tax free.

Every FM raises tax every year and helpless public continues to be milched. Corrupt Politicians and Babus pocket hundreds of thousands of crores every year yet no attempt has ever been made by any government to stop this robbery and recover the money from at least those who get caught. Why??

[ghodlur]

IMHO this budget is a total eye wash since the FM failed to provide relied to the salaried tax payers in three very important areas:

1) The income tax exemption limit was increased merely by 20000/- which would mean a saving of 2000/- pa which is nothing compared to the inflation figures. A min increase of 40K was atleast expected.
2) No increase in the conveyance expemption which is still age old 9.6K considering the fact that petrol/diesel prices have shot up by atleast 40%.
3) No increase in the exemption limit for medical reimbursements from 15K. This should have been done on priority since the cost of medical services have gone over the roof. And as a double whammy the medical insurance is bound to increase thanks to FM proposals.

All in all the budget is a big failure. These are sure signs that this govt is not going to come into power next time.

[NetfreakBombay]

Originally Posted by BaCkSeAtDrIVeR

I have only salary income for past 5 years. I have invested 1 Lakh each for past 5 years in 80C instruments alone. 80C savings, but other savings yield more than 10 - 15% of my annual income. The exemption from filing returns is only a joke; no use after 3-5 eyars of gainful employment.

Have a hunch that final wording would be along the lines of "If income is covered in Form 16..." e.g. if earnings from FD etc are already declared and considered in TDS then there is no need of filing ITR.

[TaureanBull]

Originally Posted by NetfreakBombay

Have a hunch that final wording would be along the lines of "If income is covered in Form 16..." e.g. if earnings from FD etc are already declared and considered in TDS then there is no need of filing ITR.

My two piasters on this too. As it is the real tax reforms as Direct Tax Code will be effective from Apr 2012 in all likelihood.

[GTO]

Rampant corruption; I've lost count of the number of scams in the recent past (CWG, 2G, Adarsh etc.). Uncontrollable inflation; petrol @ 65 bucks, Onions @ 70 bucks, my electricity bill has gone up 3X in 5 years. What corrective measures have been put in place?

The upper middle-class & rich will moan and move on (nothing changes). It's the lower middle-class and the poor who bear the real brunt. They are the real sufferers.

YOU CALL THIS A BUDGET!!! Go back to your office and do some real work.

[volkman10]

For CKDs or SKDs will be hit as they will be considered on CBU modules and will be charges a whopping 60% tax that with VAT will come around to 110%.

Expect Toyota prices to spiral up as the engines and finished components are imported even of its new launch Etios (engine imported from Thailand) will be greatly hit.
Unless the company absorb the prices this would be passed to its customers.

Cheers!

[kausu]

i totally agree with GTO.....!!!

[ghodlur]

Originally Posted by GTO

The upper middle-class & rich will moan and move on (nothing changes). It's the lower middle-class and the poor who bear the real brunt. They are the real sufferers.

To rub salt over the wound, there is a special category created for the senior citizens who have been given exemption from Income tax upto 5L. Now what is the percentage of the tax payers would they consitute of?

This budget is a total rip off. Has been more beneficial to the Corporate sector rather than the salaried.

[Sowmya]

My 2 cent on this budget. Moderator, you can delete if you feel it is inappropriate.

1. We are already burnt by high medical treatment cost. Why again increase the tax on hospitality.
2. Mobile/LED/AC are going to be cheap. Do we require all this in daily basis ?
3. Education fund 100Cr has been given to Exclusively Muslim community (AMU). Does not other community need education. 200 Cr for Maulana Azad Foundation. Is not this a partiality.
4. Rs. 2000 Tax relief for a year. Is it a joke from from a GOVT ?
5. Housing loan limit increased to 5L, because every thing is so expensive that we cant get a house @ 20L anymore.

[SubuS]

Originally Posted by ghodlur

To rub salt over the wound, there is a special category created for the senior citizens who have been given exemption from Income tax upto 5L. Now what is the percentage of the tax payers would they consitute of?

I don't know about what % of tax payers these senior citizens constitute, but I do know they constitute a major portion of our Political folks. Yay!

[ghodlur]

I have attached the budget highlights for reference.

On one hand it talks about reducing the gap between deficit and income generated and on other hand it says that these proposals are going to cause a loss to the national exchequer.

[benbsb29]

Such a pitiable budget presented by the FM.

As mentioned by others, the raise in the tax exemption limit yields no major gain, while the FM has gone all out to tax the harried tax paying community in all ways possible, be it healthcare, eating out... whatever!

As it is, we are burdened with spiralling prices in every sector, and even the paltry hikes dont add up to cover them.

[TaureanBull]

Originally Posted by Sowmya

1. We are already burnt by high medical treatment cost. Why again increase the tax on hospitality.

I agree with you.

But would like to correct you if you dont take offence. Hospitality has nothing to do with hospitals and medical treatment; its related to tourism industry.