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Home > Business > Budget 2003-2004 > Report

Budget may raise I-T exemption limit

February 27, 2003 18:45 IST

The Union Budget for 2003-04 to be presented on Friday may raise Income Tax exemption limit to Rs 70,000-80,000 and retain standard deduction along with tax sops for small savings and housing loans, while undertaking "clean up" operation of tax administration besides measures to spur growth.

The maiden Budget to be presented by Finance Minister Jaswant Singh in Parliament is likely to carry out the roadmap laid out by Kelkar on indirect taxes and implement the suggestions of Rajnath Committee on direct taxes, which has dumped some of the proposals made by Kelkar, official sources said.

The Budget, widely expected to carry forward reforms to widen the tax base, is also expected to make an attempt to control expenditure by cutting unmerited subsidies and lower interest rates on small savings to contain the whopping fiscal deficit, that is crowding out investment.

The pre-Budget Economic Survey has given clear signals in this direction by asserting, "there is an imperative need to address the three issues of infrastructure, regulatory and tax reforms and fiscal consolidation to establish the foundations of a robust 8 per cent growth on a sustained basis."

The sources said though the finance minister is likely to indulge in some populism in the face of stiff resistance from BJP to Kelkar panel recommendations, the Budget may contain measures that would ensure that the revenue loss that may occur was more than made up by widening service tax base.

Service tax collections are targetted to be doubled next fiscal from this year's figure of Rs 6,250 crore (RS 62.5 billion).

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Number of User Comments: 6

Sub: Budget

Subsidy on various things by govt. has to be reduced & collected money has to be used for upgradation of poor people as per earning ...

Posted by mahendra jain

Sub: RE:comment

I request the people who say that exemption limit should not be increased to come and stay in hyderabad within that limit for a year ...

Posted by Harish

Sub: Exemption limit

The exemption limit should be increased, so is the standard deduction

Posted by Anjan Roy

Sub: IT for salaried class

taxing too much for the salaried class will curb the buying capacity. it is needless to say that less buying capacity shall lead to low ...

Posted by padmanabha

Sub: tax reforms

Its sad to see that in our country only a small fraction of the population has to bear the burden of taxes .nobody seems to ...

Posted by NAVEEN


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