Budget 2018: 5 things salaried tax-payers expect from FM Arun Jaitley

Union Finance Minister on Monday tabled the Economic Survey 2018 before the Parliament and now the countdown for Union Budget 2018 has begun. 

While various sectors have expressed their wishes and what they expect finance minister to announce in his budget speech to give them relief respectively, many experts believe that in its fifth and final budget for the ongoing term, the Modi led government will announce many sops for the middle-class, taking in view the 2019 polls.

But what the middle class want from its government? Below is the list of five expectations that the salaried class wish the government fulfils in the upcoming budget for 2018. 

1. Hike in tax exemption limit

With the rising inflation and the need to ramp up savings, the salaried class want the government to hike the current tax exemption list. 

At present, the tax exemption list is Rs 2.5 lakh, that has not been changed since three years. Experts believe to give the maximum benefit, government must raise the tax limit to Rs 5 lakh. 

2. More allowances

The allowances that the salaried class is currently entitled to is not enough. The transport allowance at prsent is Rs 1,600 per month which should be raised to at least Rs 3,000 per month, given the situations face by long-time commuters. 

The tax exemption under Section 10(5) of Income Tax Act under LTA is limited to two times in a block of four calendar years for travel by self and family members only within India. 

The limit should not only be removed but it should be entitled for every year.

3. Section 80C limit 
At present, Section 80C deduction limit is kept at Rs 1.50 lakh only for past many years and again the reasons as mentioned in the first point applies here also. This limit should be revised and to be raised at least to Rs 3 lakh or 4 lakh.

4. Interest on bank savings account 
The current limit of Rs 10,000 exemption from savings account interest should be hiked too considering the inflation rate over the years. 

5. Re-introducing standard deduction
Salaried taxpayers don't enjoy any deduction of expenses from income as compared with their self-employed and businessmen friends.

The standard deduction was introduced in 1974-75, but was withdrawn in 2006-07, prior to that it was Rs 20,000 a year for a salary which was above from the span of Rs 5 lakh. 

The then Finance Minister P. Chidambaram withdrew it citing the rise in basic exemption limit and Section 80C deductions. 

But now the salaried class expect the it should be reintroduced of the standard deduction of at least Rs 1 lakh. 

The Budget will be tabled by the Finance Minister Arun Jaitley on February 1.