Budget 2020: Just Give And Take

There is an old saying," Is haath de, us haath le (Give And Take)" and it means no relief. This could be the reaction of the most of the income tax payers over the union budget as presented today in parliament. The budget has given some Income Tax rebates and has slashed tax rates and changed slabs to lower taxes for those earning up to Rs 15 lakh a year. But these IT rebates will be available to you only if you forgo other concessions being extended under 80 C and 80 D. There are over 70 concessions under these categories including rebate on housing loan, medical expenses.

So the relief as claimed by Finance Minister will be almost negligible. Most of the salaried class has floated housing loan and already availing rebate under Section 80 C of the Income Tax Act. You get a deduction for the principal repaid up to Rs 1.5 lakh a year and the interest paid is deductible up to Rs 2 lakh per annum under section 24. Its a big relief and tax payers would hardly wish to discontinue this concessions.

Under Section 80 D, You get an relief of Rs. 25,000 for paying your and spouse insurance installment. Its Rs. 60,000 if you are senior citizens. As such, minister's claim of saving in between Rs 78,000 to Rs 1,97,000 by income tax payers earning up to Rs 15 lakh a year is meaningless.

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We can expect some relief as finance minister has announced an massive $ 40 billion outlay for farm sector. If there is a increase in farm production , the prices are expected to come down. There are many cosmic make-overs in budget as usual. Every govt. vows to supply potable piped water for every house hold and 24X7 power supply even in rural areas. However, nothing has happened. This year budget also aims at providing clean water to every house. However, there is no word on 24 hour power supply. Unless there is visible relief in Income Tax, rising prices and availability of round the corner clean potable water and power, no budget can claim to be people friendly.

(Chander Sharma)