sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
Budget Extravaganza »
 How Union Budget 2018 impacts individual taxpayers
  How Budget 2018 will be different due to GST
 This is how Budget 2018 announcements may help you save tax
 Here's why the government advanced the Budget date
 Will Budget 2018 Reduce Your Income Tax? 10 Expectations
 How Budget 2018 will be different due to GST
 Will Budget 2018 cut tax on switch from dividend to growth option in mutual funds?
 Startup eco-system looks forward to the budget for addressing tax dilemma
 High time to prioritise non-tax revenue in the Budget
 Govt may abolish dividend distribution tax in budget
 Budget making in the GST era: paradigm shift

Post Budget 2011-12: Are people really better off?
March, 02nd 2011

A day after the federal budget, people across India wondered if they were really better off and problems on the ground such as high commodity prices and the general fall in living standards will be adequately addressed.

The most tangible measure proposed by Finance Minister Pranab Mukherjee concerning the average tax payer is the hike in exemption limit to Rs 180,000 from Rs 160,000. People, although they have welcomed the move, feel it is hardly worth much in real terms.

"From what I can understand, all I will gain from this hike is Rs 171 per month. That is what I paid extra for onions in December! It's not even enough to adjust for inflation, which was in double-digits most of this fiscal," said C.S. Kartik, an accountant.

"But I am happy the stock markets have reacted positively. It was going down and down. At least my investments are now coming back to the levels I acquired them. A 4-percent gain in two sessions is heartening," Kartick, who works for a private firm, told media.

In a departure from the past when stock markets had tended to move southward after the presentation of the federal budget, the sensitive index (Sensex) of the Bombay Stock Exchange (BSE) ended with a gain of 0.69 percent Mondan and 3.5 percent the next day.

Housewives had a different take. Already overburdened by the high prices of milk, fruits and vegetables, they heaved a sigh of relief when the budget proposed no extra levies on other items of household consumption, from edible oils to airconditioners and mobiles.

But they also felt their occasional indulgence of dining out will take a hit due to service tax measure. "Most good restaurants serve liquor. They are family places. This tax simply means every meal out will be costlier," said homemaker Rakhi Khanna of Noida. "I don't see any drastic change in the prices of essential items which we use everyday like pulses, rice, vegetables, eggs, milk, cooking gas, petrol," added Rukmini Mohanty, a housewife in Bhubaneswar.

Items that could become cheaper due to the budget proposals include automobiles, low-end housing loans, diapers, sanitary napkins, homeopathic medicines, agarbatti, raw silk material.

On the other hand, what could prove dearer is treatment in airconditioned private hospitals, meals at restaurants serving liquor, hotels charging more than Rs 1,000 per room per day, legal services, air tickets and branded jewellery and clothes

Nevertheless, the elders are happy that the income tax exemption limit has been set at Rs 500,000 for tax payers above 80 years, while reducing the age from 65 to 60 years to become eligible for tax sops to senior citizens. "At this stage of my life, when I have to pay for my medical expenses, which is more than my total income, this measure will come as a boon to me," 82-year-old retired technocrat Alok Kumar Srivastava told media.

Even the corporate sector, which was being forewarned by some columnists about the end to fiscal stimulus and some harsh measures to rein in inflation, was happy, since the budget reduced the tax surcharge and promised higher spending on infrastructure.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Application Management Solutions Application Management System Application Management Software System Application Management Development Application Management Software Development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions