PC as P.C. Sorcar

• The finance minister is a great magician. He has successfully created the impression that there is a reduction in income tax. The rai...

• The finance minister is a great magician. He has successfully created the impression that there is a reduction in income tax. The raising of the exemption limit from Rs 60,000 to Rs 1,00,000 is, in fact, an illusion. If one considers the elimination of standard deduction of Rs 30,000 and deduction of Rs 15,000 under 80L, the effect of the exemption limit comes down by Rs 5,000. The FM appears to have made generous gestures to women and senior citizens by raising the exemption limits for them respectively by Rs 25,000 and Rs 50,000. In fact this is not so kind, as he has taken away a lot more than he has given. Women gain Rs 2,500 (10 per cent of Rs 25,000) and lose a rebate of Rs 5,000 they were getting under section 88C. Senior citizens are hit even harder. The higher exemption limit gives them Rs 5,000 but takes away the Rs 20,000 rebate they used to get under section 88B. The FM has robbed senior citizens of Rs 15,000, while showing that he has been very generous to them! The fact that nobody has commented on this daylight robbery shows the skill of this expert magician.

— Suresh M. Mody On e-mail

• The idea of taxing cash withdrawal from one’s own bank account on which tax has already been paid is a preposterous one. Also, if anyone really wanted to create black money, he wouldn’t even mind paying that 0.01 per cent rather than the tax. So you are really not preventing black money but taxing the honest tax payer who needs that money for a legitimate reason! — S.N.Iyer Bangalore

• The best part of the FM’s budget report is the tax of Rs 10 on the withdrawal of Rs 10,000. During the FM’s press briefing everybody kept harping on this. How many of them, and how many times, have withdrawn cash of Rs 10,000 in their lifetime? No honest man will hesitate to pay Rs 10 once in awhile if he was compelled to withdraw Rs 10,000. The circulation of black money will certainly come down once this rule kicks in. I salute the FM for this step!

— Capt Ravindra K. (retd) Mumbai

• The age of the senior citizen has not been defined. If it is 60 years, then all pensioners are senior citizens and may avail the income tax slab. Otherwise the fresh pensioners will be put to great loss. Lump sum payments of PF, gratuity, leave encashment and arrears of pay on retirement, have not been exempted from income tax. On retirement the pensioner has to draw repeatedly large amounts from the bank to discharge post-retirement settlement needs. The bank’s service has become very costly with the addition of a 0.1 per cent cess on the withdrawal Rs 10,000 and more. By abolishing well-settled and predictable deductions, like standard deductions, all concessions under Sections 88 and 80L, including IT rebate on premiums paid with regard to LIC policies, stand withdrawn. This will adversely affect the LIC, the banks and the post offices. The value of the purchasing power of salaries and pensions have not been safeguarded and protected.

— Onkar Singh Riar On e-mail