Chinta Kumar finally found some time from his busy schedule to look at this years budget. He has just been hearing about this being a pro farmer budget, a 'robin hood' budget which he thinks is a nice move, however, he is worried about a few things being a middle class working guy.
He has pointed out a few things that will affect him.
Smoking is going to pinch harder with prices of cigarettes likely to go up by 8-9% with the government increasing taxes for the fifth successive year.
Router, broadband modems and set top boxes, Digital video recorder and CCTV cameras are now cheaper.
"I propose a special patent regime with 10 per cent rate of tax on income from worldwide exploitation of patents developed and registered in India," he said in the Budget speech.
The Budget memorandum said "in order to encourage indigenous research and development (R&D) activities and to make India a global R&D hub, the government has decided to put in place a concessional taxation regime for income from patents".
The aim of the concessional taxation regime is to provide an additional incentive for companies to retain and commercialise existing patents and to develop new innovative patented products, it said.
After the Budget announcements, air travel will become expensive due increase in excise duty on aviation turbine fuel (ATF) to 14 per cent from 8 per cent besides the additional levy of Krishi Kalyan cess.
Soft drinks and mineral water will also be dearer as Jaitley proposed to hike excise duty on "water including mineral water, aerated water containing added sugar or sweetening matter" to 21 per cent from 18 per cent earlier.
Branded readymade garments costing Rs 1,000 or more will become costlier as the excise duty on them has been increased to 2 per cent without CENVAT credit from nil earlier.
Customs duty on imported imitation jewellery has gone up from 10 per cent to 15 per cent while customs duty on industrial solar water heater has increased from 7.5 per cent to 10 per cent which will make these items costlier.
But our Chinta Kumar is jugaadu ;)
A home buyer in India is entitled to claim both the interest and principal components of home loan repayments for tax benefits. Currently interest payable on a 'self-occupied' house is subject to a maximum deduction of Rs 2 lakh under the head 'Income from House Property'.
Taxpayers and industry experts were expecting the government to increase the tax deduction limit for housing loans, especially in metropolitan cities, by about Rs 1 lakh to Rs 3 lakh as the current limit of Rs 2 lakh.
Besides interest, the portion of one's EMI which goes towards principal repayment is allowed to be claimed under Section 80C. This amount can be claimed within the overall limit of Rs 1,50,000 under Section 80C.
Exemptions on basic customs duty, excise countervailing duty (CVD) and special additional duty (SAD) would contribute to arresting India's high non-communicable disease (NCD) and out-of-pocket (OOP) healthcare expenditure burden, according to the finance minister. Only 50% of India's dialysis demands are met because the 4,950 centres currently existing here are largely concentrated in the private sector and major towns, explained Jaitley.
These are some of the items that got the attention of Chinta Kumar. Let us know if you have any concerns or if you happen to like any items from this years budget.
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