EXPECTATION OF SALARY CLASS FROM BUDGET 2013

                                                                                                                                                 

1. SAVING LIMIT 2. TRANSPORTATION ALLOWANCE 3. EDUCATION ALLOWANCE 4. DEDUCTION FOR INTEREST ON HOUSING LOAN

Now the individual gets deduction of Rs. 100000 u/s 80C (for PF, GPF , LIC premium, tuition fees etc.) of the income-tax Act, 1961. The above limit is quite low in the prevailing environment. Therefore every salary person expect this limit to be raised to minimum of Rs. 200000.

At present Salary person get exemption up to Rs. 800/- PM on the transport allowance granted to him by the employer. This exemption limit was set in 1998. The exemption limit on TA of Rs. 800 PM is to be raised up to Rs. 2500 PM as per the rising inflation and conveyance cost.

At present Salary person get exemption up to Rs. 100 PM per child on the education allowance granted by the employer to the employee up to two children. This exemption limit to be raised up to minimum of Rs. 3000 per month per child as par the rising cost of education.

At present Interest on the housing loan up to a maximum limit of Rs. 150000 is exempted from the income tax. This limit is to be increased up to Rs. 300000 PM to meet the cost of rising interest rate.