Like several tax-payers of the country, for 34-year-old Arun Pawar, manager with a city-based IT firm, the increased tax exemption limit of Rs 2.5 lakh declared in Union Budget 2014, is a sigh of relief. “Tax exemptions will give a marginal tax relief to the salaried class. Although I feel that overall relief is meagre in today’s scenario, as I was expecting a higher relief looking at the growing inflation,” Arun said.
But he is positive that the budget would bring down inflation in the long run as it is more inclined towards production, infrastructure and privatisation. “It will depend on how they implement the decisions declared in the budget,” he said, while welcoming the increased limit in Public Provident Fund (PPF) to Rs 1.5 lakh from the current Rs 1 lakh. “A move in the right direction that will boost the saving capacity of common people,” he said.
The rebate in housing loan has also brought smiles to the faces of citizens across the country, especially youngsters who wish to own flats. In the budget, housing loan rebate has been hiked from Rs 1.5 lakh to 2 lakh for self-occupied property.
Abhijit Kulkarni (30), a business analyst, said, “My wife and I bought a house last year. We are salaried employees, and the increase in housing loan rebate will definitely help us. The move will also promote house ownership among young professionals. It will be an effective investment option as opposed to paying taxes to the government, which sadly ends up in scams.”
The announcement about reduction in custom duties on items such as LCDs and LED TV panels has also brought cheers to many faces. One of them is 25-year-old Shekhar Pawar, a CA aspirant and sales executive with a city-based firm. “The decrement of basic custom duties on consumer goods like LCD, LED TV panels and other machinery products is in favour of consumers.
Consumption level will now increase, thus a good sign for any economy. The standard of living among citizens will also improve,” Shekhar said.
He also feels that production will increase due to competition in the market and an increase in demand. “To cope with the increase in demand, they will have to reduce their cost of production to survive in the long run,” he added.
The senior citizens too have reasons to cheer as they have Rs 3 lakh tax exemption. Expressing his joy, 62-year-old Harry Vincent Swamy, a retired junior works manager, said, “I wasn’t expecting much from the budget, but I was quite impressed with the policy of tax exemption of up to Rs 3 lakh for senior citizens.
This will definitely increase savings for people, who live on pensions and also increase their investment. However, I feel that for the higher income groups, who have a saving or an earning of more than Rs 3 lakh, the policy will have some adverse effects.”