01 Mar, 2015 09:59 AM

Budget 2015 - Its disappointment & disappointment for employees

The salaried class, who were expecting a middle class friendly budget landed for a huge disappointment. The budget offers no personal taxation relief to tax payers. The very meager benefits were the increase in exemption limits of transport allowance by Rs. 800 to 1600pm, which would result in a reduction of IT payment by Rs. 2880 if you are 30% slab. The Mediclaim policy limit had been increased increased from Rs.15,000 to Rs.25,000. The benefit come only if you are taking the policy. The Pension fund exemption increase from Rs.1,00,000 to Rs.1,5,0000 u/sec 80CCD. How ever this is only savings based which means you will not get any direct benefit.

The disadvantages to common man are considerable. The increase in excise duty and service tax from 12.36% to 14.42% which will increase the price line. Also, the negative list of services has also been expanded by bringing more services under tax net. With the increase in service tax, the items which will be costly now are air conditioners, refrigerators, hospital bills, courier services, restaurant bills, gym, laundry service, beauty parlor, spa, cable TV, architect's services, air travel, radio taxi travel, AC bus travel, cosmetics, mobile phone bills, watching movies in multiplex, medicines and IT products.

The proposed increase in indirect taxes is inflationary. The Prime Minister has not bothered to implement his promise in his election manifesto where it was mentioned that the individual income tax limit will be increased to Rs.5,00,000. The Budget presented is similar to the one presented by the previous UPA regime . The influence of World Bank, WTO etc., is prevalent in the Budget proposal to stream line subsidies and reduce the coverage of people who are below the poverty line .