Denizens seek tax sops to check inflation

HYDERABAD: With just hours to go for Union finance minister Pranab Mukherjee to present the Union Budget, denizens are hoping for a few tax sops to beat the inflation. A common demand among people, be it businessmen or homemakers, is increasing saving limit under section 80 (C) and raising the tax exemption slab.
Homemakers in the city rue that the prices of all commodities and even basic vegetables have gone through the roof and hope that gets corrected in this budget."If earlier, my weekly grocery shopping costed me Rs 1,000, I can barely manage to buy all that I need in Rs 2,000 now,'' says N Pramila Rao, a homemaker. The Ameerpet resident says that the government needs to control petrol prices to check the north-bound rates of other essential commodities.
Denizens are also hoping that the budget would give them a better quality of life, by making entertainment options more affordable. Those in the entertainment industry say it's time for the government to slash entertainment taxes that have sky-rocketed in the last few years. "Why doesn't the government tax other entertainment mediums such as radio and television. Why do films alone attract this entertainment tax?'' questions filmmaker Mani Shankar.
Salaried employees are hopeful that benefits such as medical and conveyance allowances might just get a favourable mention in the budget. "The cost of medical treatments is going up and there is a need to make medical reimbursements tax free up to Rs 30,000 from the existing Rs 15,000,'' said Aravind Gangadharan, a Madhapur resident.
A few more citizens demanded tax cuts for services such as mobile phone bills. There is also a need to revise tax slabs, say denizens. "We hope that the extent of exemption under section 80 (C) would be increased from Rs 1 lakh to Rs 1.5 - Rs 2 lakh,'' said V S Pranava, a salaried employee, adding that this would make things comfortable for people like him. "I also hope there are no additional taxes introduced this year,'' said V R Prasad, an HR professional.
Various industry sectors too are hoping that the budget does not bring in higher taxes. If the automobile sector is praying that the excise duty on vehicles does not go up, salaried employees are hoping that the finance minister would raise the tax exemption slab from the existing Rs 1.6 lakh to Rs 2 lakh. Auto industry insiders say that the prevailing excise duty on small cars has attracted several players into the Indian market and has also led to good sales. However, they fear that even a marginal rise in this excise duty would result in players pulling out of the market.
However, the real estate sector, which has already submitted its representation to the government, is seeking several crucial sops including a special 10 per cent tax exemption over 10 years for first-time home buyers and increasing tax exemption slabs from Rs 1 lakh to Rs 2 lakh for those applying for a home loan. "The government currently gives a 5 per cent tax exemption to the lower income group seeking a loan up to Rs 1 lakh to buy a house. To promote social housing, the government should make the tax exemption applicable for a loan amount of up to Rs 4 lakh,'' said C Shekar Reddy, president, Confederation of Real Estate Developers Association of India, AP chapter.
While the software industry in the city is not hopeful of any sops as the government had earlier announced that it wouldn't look at expanding software technology parks, however, some small and mid-sized firms want a cut in the corporate tax. They are demanding that a tax be levied on IT and agriculture sectors, while the smaller businesses should be given exemption from heavy corporate taxes.
The fairer sex also has a wish-list for the finance minister. "I hope to get better concessions and better tax slabs for women,'' said P Varada, a working professional, adding that reduction in taxes levied by beauty parlours would be welcome.