Budget for middle class people

Budget 2011-12 – The aam admi Expectations

Shikha Raina from Mumbai

House buyers, builders unhappy with Rs 25-lakh cap on eligibility for home loan subsidy; say the amount will fetch them nothing even close to city limits

General reactions to the general budget for 2011-12 announced by Finance Minister Pranab Mukherjee, remained positive despite usual negative remarks by Opposition parties. Confederation of Indian Industries (CII) welcomed the budget by saying it is a growth-oriented and a good one and it has not taken the last year’s growth for granted”. 

We the common citizens of India look forward to 28th of February with great expectation as Union Budget of 2011 – 2012 will be presented. The crucial day will be a deciding factor of rest of the year. As the country is rocked with multi-crore scams and rising prices of food ,this Union budget thus is looked upon with great expectation and is a critical point to make things better for the ruling government .The common man pays his bills and his taxes with a sole expectation that the government will take care of the nation and the common citizens but with all scams and sky touching prices its time for the government to gain the faith of people of India by presenting a solution and clean budget for the people of India .                   

                                                                                                                                                                                                                                           This budget 2011-12 looks like somewhat liable answer as 'yes' and 'no' altogether for each question. Finally it will affect Middle class and Poor family.The budget is for corporate world and not for the common and middle class people. The poors have too many projects to survive with. For poor no work sufficient pay, free food, home, education, medical and others. But for the middle class more responsibility, hard and more work, less pay, high tax. For the higher class more pay less work, more facilities and equal tax with middle class.

 Her are some of the key points which were included in budget for middle class.

 

IT Exemption:

1.     The IT exemption limit for general category has been raised from 1.60 lacs to 1.80 lacs. The general tax payers will have to pay 10 per cent tax on income between Rs 1.8 lakh and Rs 5 lakh; 20 per cent between Rs 5 lakh and Rs 8 lakh; and 30 per cent on income above Rs 8 lakh.

2.     The IT exemption for Women has been kept unchanged.The exemption limit for women tax payers will be Rs 1.9 lakh. They will have to pay 10 per cent tax on income between Rs 1.9 lakh and Rs 5 lakh; 20 per cent between Rs 5 lakh and Rs 8 lakh; and 30 per cent for income above Rs 8 lakh

3.     The IT exemption for Senior Citizen has been raised to 2.50 lacs.They will have to pay 10 per cent on income between Rs 2.5 lakh and Rs 5 lakh; 20 per cent between Rs 5 lakh and Rs 8 lakh; and 30 per cent on income above Rs 8 lakh.

4.     The Qualification age for being a Senor Citizen has been lowered to 60 from 65.

5.     A new Super Senior Citizen bracket (slab) announced at age 80, where upto 5 lacs of income will be exempt.

Income of Super senior citizens between Rs 5 lakh and Rs 8 lakh will attract a tax of 20 per cent and above Rs 8 lakh 30 per cent.

Other Tax Benefits

The tax benefit of Rs 20000 under section 80CCF (Investment in Infrastructure bonds) has been extended for one more year i.e. for 2011-2012

Other Highlights

1.     Direct Tax Code to be effective from April 2012.

2.     Some categories of salaried people exempted from filing I-T returns. Government will soon notify a category of salaried taxpayers who will not be required to file a return of income as their tax liability has been discharged by their employer through deduction at source (TDS).

3.     Housing loan limit rose from Rs 20 lakh to Rs 25 lakh from priority sector lending.

Credits- corepro.in