Budget makes the Sethis’ day

The finance minister’s decision to raise the basic tax exemption limits has brought smiles to many households. Among them are the Sethis. Mamta Sethi, a teacher, is set to join work in April after a short voluntary break. “I’m pretty happy with the Budget,” was her initial reaction. “The new tax slabs will help me save more.” Her husband, Raman, a senior executive with an MNC, is equally excited about the extra savings that he will be able to make due to the revision in income tax slabs.

Besides this, being a homemaker right now Mamta is thrilled at the lowering of excise duty on electronic items like washing machines, TVs, and set top boxes. With this, the couple is actively considering buying another TV set for their household. While household goods excite Mamta, a cut in the excise duty for automobiles has got Raman’s mind ticking.

On the investment front, Raman, who invests a major chunk in equities, might have to give a re-look to his profile owing to the hike in short term capital gains to 15 per cent.

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Lauding the Budget, the couple pointed out some grey areas as well. On the inclusion of more schemes under the ambit of tax saving instruments, Raman said: “They should have also raised the Section 80C limit.”

An additional deduction of Rs 15,000 under Section 80D is sure to benefit people, feels Raman. Summing up the Budget, Raman said, “From a household perspective, it is a good budget.” Added Mamta: “On a scale of 1 to 10, we’ll rate it at 7.5.”