These are among some of the expectations of industry body GCCI from today’s budget
The upcoming Union Budget for the fiscal 2018-19 should encourage households to save and invest in a safe manner, said Gujarat Chamber of Commerce and Industry (GCCI) in a memorandum given to the Union Finance Minister Arun Jaitley. The government should increase tax exemption limit under Section 80C of Income Tax Act and consider liberalisation of several other provisions. It also suggested that sufficient transparent consultation should happen before such provisions are made.
Under Section ‘Suggestions related to Personal Taxation’, GCCI suggested that the exemption under Section 80 should be raised to Rs3,00,000 to provide impetus to ensure investments leading to more capital formation in the economy. Also, the deduction limit of health insurance premium under Section 80D from Rs30,000 to Rs1,00,000. Similarly, the limit for medical expenses for the dependents under Section 80DD should be doubled from Rs75,000 to Rs1,50,000. The deduction limit for medical treatment under Section 80DDB should be raised from Rs40,000 to Rs1,00,000. GCCI drew attention to the fact that the cap of Rs15,000 for medical reimbursements in unchanged since 1998-99 and so it is high time that it should be raised to Rs1,00,000.
“For over a decade now, the incentives to save and invest in safe instruments has eroded. The interest rate of FD is falling. The exemption limit under Section 80C has been kept at Rs1.5 lakh for too long now. Considering inflation and changing requirements, we have suggested to the government to should increase the exemption limit. Considering the modern day requirements of insurance and social security, the limits should be raised,” said Shailesh Patwari, president of GCCI.
In the memorandum, GCCI said that the deduction of interest on housing loan may be increased from Rs two lakh to Rs four lakh. Also, the amount of employers contribution to the approved superannuation fund of any amount should not be treated as a prerequisite. GCCI suggested that the contribution to the superannuation fund may not be taxed as a prerequisite as per the ratio of decision laid down by the Supreme Court.
Since infrastructure creation is not a prerogative of government companies alone.
TAX TAXATION
- Under Section ‘Suggestions related to Personal Taxation’, GCCI suggested that the exemption under Section 80 should be raised to Rs3,00,000 to provide impetus to ensure investments leading to more capital formation in the economy..
- Deduction limit of health insurance premium under Section 80D from Rs30,000 to Rs1,00,000. Similarly, the limit for medical expenses for the dependents under Section 80DD should be doubled from Rs75,000 to Rs1,50,000.
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