Taxpayers disappointed

The proposed marginal Rs10,000 increase in threshold tax exemption limit while foisting an additional one per cent education cess on them has greatly disappointed personal income tax payers.

In the backdrop of rising prices and high inflation, tax payers were expecting increase in exemption limit by Rs30,000 to Rs50,000. But the threshold limit now stands at Rs1,10,000 against Rs1,00,000 earlier.

The increase in exemption limit, which will provide a relief of Rs1,000 to Rs2,000, will be partly neutralised by increase in education cess from 2 per cent to 3 per cent.

This has to be paid not only on income tax but also on all products and services covered under excise, customs and service tax.

By raising dividend distribution tax from 12.5 per cent to 15 per cent, the finance minister has put additional burden on taxpayers investing in stock markets.

The budget proposes to increase the income tax exemption limit from Rs1,00,000 to Rs1,10,000. For women, the exemption limit has been raised from Rs1,35,000 to Rs1,45,000, and for senior citizens from Rs1,85,000 to Rs1,95,000.