Professional Tax Payers who are expecting an income tax exemption to be increased to Five Lakh per year, are disappointed once again. Arun Jaitley who tabled the budget a short while ago, did not make any changes to the Tax exemption slabs. He just increased the House Rent Allowance to 60000 per annum.
Until now, the HRA Tax exemption is just 24000 per annum. Even this increased exemption is restricted only to those earning less than Five Lakhs per annum. The Finance Minister introduced a new 0.05% Krushi cess which takes the Service Tax hiked to 14.55% which makes mobile bill payments, Internet, DTH, Restaurants etc.
Another little respite is for the first time house buyers. The finance minister announced an additional 50000 deduction on house loans for house up to 50 Lakh and loan up to 35 Lakh. Also the car buyers will be burdened by additional cess imposed. Diesel cars will cost more. So, salaried class and the middle class are in for a disappointment here.