Union Budget 2011: Tax Expectations

Pranab Mukherjee, Indian politician, current F...

Pranab Mukherjee

Union Budget 2011: Tax Expectations.

Our finance minister Pranab Mukherjee will have to walk the tightrope by curbing inflation and boosting growth while addressing concerns over black money.

There are indications that the finance minister will announce increase in tax exemption but at the same time increase service tax and excise duty on manufactured products such as cars and TV sets to plug the fiscal deficit.

There is an indication that to cushion the tax blows, he may help ease petrol and diesel prices a bit by announcing tax cuts on the fuels.

There can be a tax immunity scheme that could help draw out concealed incomes to turn them into something productive.

Mukherjee may have some good news for the salaried class, with the government considering a marginal rise in the income tax exemption limit to Rs 2 lakh per year from the existing Rs 1.60 lakh to give people more money to offset inflation.

Presently, the existing annual tax exemption limits stand at Rs 1.6 lakh for men, Rs 1.9 lakh for earning women and Rs 2.4 lakh for senior citizens.

Pranab walks the tightrope – Hindustan Times.

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