Union Budget under Modi: Impact on salaried Individuals
(Last Updated On: February 2, 2017)
With The Union Budget 2017-18 just around the corner, the entire country has set their own personal expectations from it. Three budgets have already been passed under Modi’s government. So, before setting up our expectations, let us first dwell in past and understand what our previous Budgets had held for individuals.
Here is a list of benefits passed on to salaried individuals in previous budgets under his governance:
* Incase of superannuation fund & recognised provident funds, the same norm of 40% of corpus to be tax free will apply in respect of corpus created out of contributions made on or from 1.4.2016.
Looking at the above table, it can be inferred what previous budgets held for the individuals.
Budget 14-15 :-
The first budget of Modi Government was focused to impress all small tax payers. This budget increased the slab limit from Rs 2 lakhs to Rs.2.5 lakhs in addition to increase in section 80 C deduction limit by Rs.50000. The budget also provided an additional deduction on home loan by Rs 50000.Thus, winning the hearts of the Aam Adami.
Budget 15-16 :-
It was focused on passing on multiple health benefits to tax-payers. Limit of deduction of health insurance premium increased from Rs.15000 to Rs.25000, for senior citizen’s limit increased from Rs.20000 to Rs.30000. Taking care of super senior citizens, the budget further provided deduction of Rs.30000 towards medical expenditure for those who were not covered by health insurance.
In addition, Deduction limit of Rs. 60000 with respect to specified decease of serious nature was enhanced to Rs.80000 in case of senior citizen along with additional deduction of Rs.25000 for differently abled persons.
The budget further introduced Sukanya Samridhi Scheme for promoting the education of girl child. This budget provided a small relief to individual taxpayer’s inform of additional deduction of Rs.50000 for contribution to the new pension scheme u/s 80CCD. In a nutshell, not a very applaudable budget. But, Sukanya Samridhi Scheme won the hearts of many Indians.
Budget 16-17 :-
It was meant to pass on benefits related to house to individual tax-payers. It provided relief to tax-payers who live in a rented house by increasing the limit u/s 80GG to Rs.60000. For the first time home buyers, it provided additional interest deduction of Rs.50000 for loans up to Rs.35 lakh sanctioned in 2016-17, where house cost was up to Rs.50 lakhs.
Other key highlights were the increase in the limit of relief u/s 87 A & increase in tax benefits under the pension scheme.
From individual point of view, it was an average budget with not much to offer to small tax payers.
Now after the demonetisation drive, burden of expectation shifts to Arun Jaitley’s Union Budget 2017-18. Unaware as to what hold in budget kitty, the entire country is waiting in anticipation for the upcoming Budget 2017-18.