According to me, The only class of people who suffer from “Taxomania” is a Salaried Class. I am writing this article for all salaried class people who are affected by this Union Budget either Positively or Negatively. As You all know, Our Current Finance minister, Mr. Pranab Mukherjee has presented our 81st Union Budget and He has presented this Union Budget for seventh time, followed by Mr. Morarji Desai, who presented Union Budget for 10 times in Indian History. Anyways, This is not my topic so I am moving ahead with my main topic below. 
- Basic threshuld limit for chargeability of Income Tax increased from INR 1.80 lakhs to INR 2.00 Lakhs – A GOOD MOVE, WILL RESULT IN REDUCING THE TAX BURDEN BY INR 2060/- FOR GENERAL TAX PAYERS. LESSER BENEFIT FOR WOMEN ASSESSEES SINCE THEY BENEFIT BY WAY OF ENHANCEMENT OF THE LIMIT BY ONLY INR 10000/- AND CONSEQUENT TAX SAVING OF INR 1030/-, THE HIGHER EXEMPTION LIMIT FOR WOMEN ASSESSEES SINCE LAST MANY YEARS HAS NOW BEEN DONE AWAY WITH.
- The higher ceiling in the tax slab for the 20% tax has been increased from INR 8.00 lakhs to INR 10.00 Lakhs – A GOOD MOVE, THIS WILL RESULT IN REDUCING THE TAX LIABILITY FOR PEOPLE HAVING INCOME ABOVE RS.8 LACS WITH A MAXIMUM BENEFIT OF INR 20060/- FOR ASSESSEES HAVING INCOME OF INR 10 LAKHS AND ABOVE.
- Additional deduction of upto INR 5000/- provided for preventive medical checkup in the total ambit of INR 15000/- deduction u/s 80D – A GOOD MOVE, THIS WILL CERTAINLY ENCOURAGE PEOPLE TO GO FOR ANNUAL MEDICAL CHECKUP AND CLAIM DEDUCTION FOR THESE EXPENSES.
- Additional deduction u/s 80CCB for investment in infrastructure bonds upto INR 20000/- has been extended beyond a.y.12-13. – A GOOD MOVE, AN ADDITIONAL AVENUE FOR TAX SAVING INVESTMENT FOR SMALL TAX PAYERS CONTINUES FURTHER.
- Senior citizens not having business income not required to pay advance tax – A GOOD MOVE, RESULTING IN LESSER COMPLIANCE FOR SENIOR CITIZENS, BUT WOULD BURDEN THEM WITH THE ENTIRE TAX LIABILITY TO BE PAID AT ONE GO AT THE TIME OF FILING RETURNS.
- Deduction of upto INR 10000/- for interest earned in SB account – A GOOD MOVE, WOULD REDUCE TAX BURDEN OF SMALL TAX PAYERS WHO KEEP THEIR SAVINGS IN NORMAL BANK SAVING BANK ACCOUNTS.
- Salaried employees having salary income upto INR 5 Lakhs and interest income from SB account upto INR 10000/- would not be required to file tax returns – A GOOD MOVE, RESULTING IN LESSER COMPLIANCE BY SALARIED EMPLOYEES DRAWING LOW SALARY, BEING SMALL TAX PAYERS.
- Tax deduction for payment of life insurance premia and tax exemption for maturity proceeds received shall no longer be available for new pulicies taken where the annual premium exceeds 10% of the sum assured. –THIS WOULD DISCOURAGE INVESTMENT IN LIFE INSURANCE SCHEMES. EARLIER LIMIT WAS FOR PulICIES HAVING ANNUAL PREMIUM OVER 20% OF THE SUM ASSURED. FORTUNATELY, THE SAME HAS NOT BEEN MADE APPLICABLE TO EXISTING PulICIES.
- Capital gain on sale of residential property to be exempt from tax if it is invested in equity shares of eligible companies – A GOOD MOVE, ANOTHER CAPITAL GAIN TAX SAVING AVENUE AVAILABLE TO THE ASSESSEES.
- Buyer of immovable property worth INR 50 lakhs and above in urban areas and INR 20 lakhs and above in rural areas will now be required to deduct tax at source @1% on payments made to the seller – THIS WOULD RESULT IN UNNECESSARY COMPLIANCE FOR THE BUYER OF PROPERTIES WHO WILL NOW BE REQUIRED TO OBTAIN THE PAN OF THE SELLER AND THEN DEPOSIT THIS TAX. THE DEPOSIT OF TDS REQUIRES A PERSON TO OBTAIN A TAX DEDUCTION ACCOUNT NUMBER (TAN) AND THEN CONTINUE TO FILE THE TDS RETURNS (EVEN IF IT IS NIL) TILL HE HulDS THE TAN. HOW THIS PROBLEM IS TO BE SulVED, HAS NOT BEEN EXPLANIED.
- Cash purchase of jewelry and bullion over Rs. 2 lakhs would require tax to be cullected at source @ 1% by the seller from the buyer – GOOD MOVE TO CURB CASH TRANSACTIONS, BUT WOULD IMPACT JEWELLERY BUSINESS. ALSO UNNECESSARY COMPLIANCE FOR THE JEWELLERY SHOP OWNERS TO OBTAIN PAN OF THE BUYER. THE DEPOSIT OF TCS REQUIRES A PERSON TO OBTAIN A TAX CulLECTION ACCOUNT NUMBER (TAN) AND THEN CONTINUE TO FILE THE TCS RETURNS (EVEN IF IT IS NIL) TILL HE HulDS THE TAN. HOW THIS PROBLEM IS TO BE SulVED, HAS NOT BEEN EXPLANIED.
- STT on delivery transactions reduced by 20% from 0.125% to 0.10% – A GOOD MOVE SINCE IT WILL REDUCE THE COST BURDEN OF IRREGULAR INVESTORS WHO WERE NOT ABLE TO CLAIM THE DEDUCTION FOR THE STT PAID.
