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For an individual earning Rs 20 lakh a year, the abolition of 10 per cent surcharge will lower the tax burden by Rs 4,420 a month (see chart above).
Finance Minister Pranab Mukherjee today kickstarted the phasing out of surcharges by letting high-income individuals be the first beneficiaries. This, officials said, will cut collections by Rs 6,000 crore.
Tax experts said the effect of doing away with the surcharge will be 10.3 per cent for the above Rs 10-lakh-income group since the education cess of 3 per cent on the surcharge will also go.
The hike in exemption limit for senior citizens by Rs 15,000, for women and all salaried taxpayers by Rs 10,000 will cost the exchequer another Rs 4,000 crore. In other words, by doing away the surcharge and increasing the exemption limit, Mukherjee has imparted a Rs 10,000 crore stimulus.
High-income individuals have more than one reason to smile. The Budget has doubled the threshold limit at which the wealth tax of 1 per cent kicks in. After 17 years, the threshold limit has been increased to Rs 30 lakh from 15 lakh. Wealth in excess of Rs 30 lakh will lower wealth tax by at least Rs15,000.
Women, for whom Mukherjee has hiked the threshold I-T exemption limit to Rs 1.9 lakh, will make substantial savings if they are in the higher income bracket. The tax burden of senior citizens will be at least Rs 1,500 less, whereas for all individual taxpayers, it will be lower by a minimum Rs 1,000.
The trap for salaried professionals lies in the way fringe benefit tax has been shifted from the employer to the employee. The gains from employee stock option plans (ESOPs) will now be taxable at the employee end. The contribution by employers to approved retirement funds in excess of Rs 1 lakh will be taxed at the hands of employees, resulting in an increase in their tax outgo.
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At the time of Recession Congress is trying to play a dangerous game by giving away all the tax income to the government, that too for the riches. Now that Riches will become rich and poorer will be poor ever. There is no affirm action plan for the poor except the NREGA, which is most corrupt in many parts it is implemented. from the definite sources the councillors and panchayat unions itself take 20 to 40 rupees per person depending on the area and opposition from people and the money is spent not the way it has to be. They are giving money to contract workers whoi are already working for raod laying and other government jobs and getting thumb impression or signature from them. I think instead of spending in NREGA government can ensure social security for All Senior Citizens above age 55 or 60 years and give them this money of Rs. 3000/- on Monthly basis. And make the younger generation explore the world instead making them fools and lazy.
Congress has been playing vote budget from beginning. If they spend on poor then only money come to their pocket .They are very much sure that, vote will come from poor not middle class. If they spend 50 rupees on poor then will be in power for next 5 years.Nothing they have done for low/middle class families.
Big Budget 2009-10 is presented by our full majority elected single party government so there is no need to care middle class families because they do not own any strong leader who raise his voice. Only source is to write by this column only. I humbly request pranab da to increase salary exemption limit to minimum 2 lacs as promised by congress party.
having worked and paid taxes all their lives senior citizens should be totally exempted from the tax bracket irrespective of the income they earn
The union budget focused only on Rich and not at middle class. The reduction of taxes on Plasma TV and Branded Jewelery. Pranab must have checked with his wife on what are on her priority list and reduced the same. The tax reief a employee would maximum get is Rs 3000/- where any employee in corporate sector gives away 2 months take home as taxation. Also the Medical allowence of 15000/- per year should be re-looked per number of family members or at least revised to 30000/- year against production of Medical Bills. Pranab wake up and act.
Budget Changes effective date not clear
Budget 2009-10 is very much disappointing for Salaried class, the exemption limit for salaried employees is not raised as per expectations (3 lac). The savings limit of Rs. 1 lakh has also not been considered for increase. Finance Minister should increase atleast Rs. 50,000/- for exemption and Rs. 1.50 lakhs for saving limit.
We have always been complex on taxes, be it income tax or any other. The people of India have to be ready for increase in prices 15 days before the budget and then to be happy with some relief that follows the budget. There is nothing unusual. Complexities of categories and tax slabs and exemptions are nothing but bureaucracy. Well, it's a budget by one of our elected/chosen one!
Budget 2009-10 is very disappointing for Salaried class,the exemption limit for salaried employees is not raised as per expectations (3lac).The savings limit of Rs.1 lakhs has also not been considered for increase.Finance Minister should increase atleast Rs.50,000/- for exemption and Rs.1.50 lakhs for saving limit.
Being increased the cost of living the examption of level of salaried employees will consider upto 1.80 lakhs
budget is not to the expectation,as govt servents are the most sufferer.cost of living is not only high but very high so relaxation given in tax is not compensating from any angle.
Disappointment from mr.pranav mukharjee,tax exepemption for male assessee should have been around 2 lacs and corporate tax should be raised to 35%.which can be compensated by abolishment of FBT.
Do you know reason for increasing the limit to Sr Citizen => Most of our ministers are Sr Citizens
The increase of 10K for salary is not an exemption in reality as the Govt has failed already in controlling the price despite the sub "zero" level inflation. The hike of petrol and diesel has its automatic impact on the life of amm aadhmi! it is only the "higher tax payer" got the benefit - this Govt stated a 100 days programme, it really give shocks to the genuine tax payers, who are benefited to a paltry sum of Rs.1000 - 1500/-, (this will get eaten by the pre budget increase of petrol/diesel) Think India Think on how we have been taken for granted by the 150 year old party which we Indians voted to power without realising they will penalise by the hike in petrol/diesel price and providing NIL benefit in practical in the tax rebate.
Budget 2009-10 is very disappointing for Salaried class,the exemption limit for salaried employees is not raised as per expectations (3lac).The savings limit of Rs.1 lakhs has also not been considered for increase.Finance Minister should increase atleast Rs.50,000/- for exemption and Rs.1.50 lakhs for saving limit.
Budget 2009-10 is very disappointing for Salaried class,the exemption limit for salaried employees is not raised as per expectations (3lac).The savings limit of Rs.1 lakhs has also not been considered for increase.Finance Minister should increase atleast Rs.50,000/- for exemption and Rs.1.50 lakhs for saving limit.
wat is the applicable tax rate for A Y 2009-10 ?Pre-Budget tax rate or Post budget tax rate ?
FM should have increased the minimum tax slab instead of removing the surcharge from higher salaried paid. Tax exemption of Rs. 1,000/- is nothing compared to price increase of everything every where.
Sir, If we look at the overall relief on income tax calculation, it is seen some relief is there, but for salaried people especially MEN, the tax exemption level is very low, compared to current cost of living. Also, between MEN
Abolition of FBT and commodity transaction tax is a welcome step. Regarding tax rates, these are reasonable at the moment comparing anywhere in the world.
Merely raising Rs 10,000 tax exemption, this UPA Government budget just showing that they are doing so much for "aam aadmi" Can they promise that prices of all commodities, petrol etc. will not going to raise for next one year? They give exemption from one hand and take more from other hand. What about development our villages need basic amenities first and other things latter.
The prices of food, petrol and all daily use things have increased upto 10 folds but still the exemption we will get only in pennies how logical this is
The increase in limit is just a joke. Tax relief is limited to Rs1000/- to Rs.1500/- for sr.citizen where as price increase in food articles is almost 50%. Media and ruling party is telling that F.M has left more surplus money with people and would boost economy. Aam admi miseries shall rather be increasing.
axe of FBT is a welcome announcement in the 0910 budget.Compliance of FBT formalities are highly tedious. now its hassle free for corporates. thanks FM
UPA II CONGRESS LEAD GOVERNMENT HAS DONE NOTHING THE THE INDIVIDUAL TAX PAYERS NOTHING HAS BEEN THINK ABOUT THE SALARY CLASS WHY THE DISCRIMENATION BETWEEN MEN AND WOMEN IN INDIAN SOCIETY MEN HAS RESPOSNSIBILIT TO LEAD THE HOME SO IT IS UNFAIR ON THE PART OF THE GOVERMMENT TO THINK THAT MEN HAS RESPONSIBILIES TO GOVERN HIS HOME AND THE COUNTRY BY PAYING THE TAX AT LOT.