One of the best budget for individual taxpayers

For individuals
The positives
i. The special feature has obviously been the hike in basic exemption limit to Rs 1.5 lakh. For women the exemption limit has increased to Rs 1.8 lakh and for senior citizens to Rs 2.25 lakh. Moreover, even the slab rates have been changed and these new slab rates will bring in a lot of saving for the individual taxpayers. What you will save:The minimum income tax saving for an individual as a result of new budget proposal would be Rs 4,120, while the maximum saving for those earning income upto Rs 5 lakh, would be to the tune of Rs 45,320. Definitely, it is a big saving for an individual taxpayer. ii.Reverse mortgage rules have been clarified which will help senior citizens in particular to take advantage of the provisions concerning reverse mortgage.The negativesi. Individual taxpayers will not be happy about the provision relating to shot-term capital gain. Till no we have enjoyed tax of only 10% on STCG but now the STCG tax payable would be 15%.

ii. Also, another important feature which is missing in this year’s budget is the request of salaried employees for a standard deduction from their salary income. No standard deduction has been granted in the budget proposal.

iii. Also, in respect of perquisites, the difference between the tax treatment of government employees and private employees with respect to residential accommodation has not been done away with in this year’s budget.

For corporates
Although this budget has been good to the individual taxpayer, it has not been so for the corporate taxpayers because the fringe benefit tax provisions and other connected provisions have not been altered in the way the taxpayers wanted it.