Friday, March 28, 2008

UNION BUDGET - Increase in tax limit cheers salaried class

The Finance Minster has played Santa to cheer the working class by increasing the threshold limit for tax exemption from Rs 1,10,000 to Rs 1,50,000, thus giving every taxpayer a relief of a minimum of Rs 4,000. He has been extra generous to the women taxpayers, by further increasing the exemption limit to Rs 1,80,000 for them.
The salaried class seems to be very buoyant about these provisions. "The new tax slabs will help the working middle class to improve savings and start investing. The increase in the purchasing capacity of the population will fuel growth of the manufacturing sector and improve the standard of living of the masses," felt Mr Animesh Ghose, assistant systems engineer, Tata Consultancy Services Ltd.
And the service class has already started planning for the extra money that this tax exemption will help save. Mr Amar Rajgopal, telecommunications engi neer, Ericsson, said, "The price cut announced by the auto majors following the budget has brought the entire vehicle segment within the common man's reach. Reduced cost of cereals will also largely benefit the middle clas."
"Mediclaim being extended up to 50,000 if spent on parents will benefit the working youth. No hike in home loans is another important good news for the us," added Mr Venkatesh Narasimhan, Finance executive, Cybernet SlashSupport Mr Nachu Nagappan, PR executive, pointed out, "The increased allocation to SSA and Education is a positive sign for a growing economy. This is a balanced and growth oriented budget with benefits for the sectors like education, health and agriculture." Amount Tax Exempted Up to Rs 1,50000 NIL Rs 1,50001-Rs 3,00000 10 % Rs 3,00001-Rs 5,00000 20 % Rs 5,00001&above 30 %

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