Come 10th July 2014, and we will have new budget from new government, but whether it would same things in new bottle ? India needs bold steps from the government, and with the government having the right kind of number it can bulldoze anything. Like others, salaried class also has its own expectations from the new finance minister. This article stresses on ” Salaried Individuals want these 5 grandfathered exemption to be relooked ” .  Increase basic exemption to 3 Lacs : This is most common expectation every individual has from this budget, we think that the basic exemption should be enhanced to atleast 3 lacs . In the view of current inflation and price level, the enhancement of basic exemption limit will lower the tax of an individual and increase the spending habit. Revision in conveyance related allowances: Current exemption limit of transport or conveyance allowance u/s. 10(14) Rs. 800 per month is grandfathered now. Today, there is no correlation between fuel price and the limit of conveyance or transport allowance still remains the same.  The same issues are being faced in the valuation of car perquisite which contains the fuel expenses. These limits related to fuel expenses have to be relooked by the government. Revision in the medical expenses exemption: Another grandfathered exemption of reimbursement of medical expenses limit of Rs.15000 per annum needs to be increased, as the current limit limit is very less comparing the cost of medical expenses in current scenario. Revision in education allowances: The exemption of educational allowance Rs.100 per child per month & hostel expenses allowance Rs.300 per child per month is actually laughable .  The limit has to be set according to current cost levels. Deduction in respect of notice period pay: This is most debatable issue during the change of employment. If employee resigns from the current employer and going with serving notice period, the payment made by the employee to employer to compensate will be deducted from his salary payable. But as per tax calculation it will be shown as income but there is no clear provision in deduction for the same. So it can be considered in this budget. To Conclude:   These are few of things every salaried individual would want from the new government, however, widening of tax base, at present only 3 per cent of populations pays income tax should also be looked into. The crux point is increase the economic growth and control the inflation are the major expectation from this budget by all.

Personalized Tax Returns Prepared & Filed by Tax Experts – Due date for FY 2013-14 (March 2014) is 31st July 2014, Also file for FY 2012-13, if not already, before you get a notice . Click here to choose your options