AAM AADMI NEEDS RELIEF

AAM AADMI NEEDS RELIEF
The ‘Aam Aadmi’ is eagerly awaiting the Budget 2011. The rising prices of food and other essential commodities are denting a huge hole in the pocket of the common man. Like the Finance Minister, he is also finding it very difficult to balance his budget. While the Finance Minister can afford to either borrow or print money the common man can’t do so. Hence the Finance Minister must come to the rescue of the ‘Aam Aadmi’, the common man and provide substantial relief to him through the forthcoming budget.
1] Basic Exemption Limit. The present income tax limit for all the sections of citizens is very inadequate. Taking into account the galloping inflation, Basic Exemption Limit should be raised to Rs 3 lakhs. It should be Rs 4 lakhs for women and Rs 5 lakhs for Senior Citizens.
2] Savings Limit. Presently a maximum of Rs 1.2 lakhs can be saved under Section 80 C etc, to claim tax rebate, which is quite inadequate. As the money is losing its value very fast this limit should be raised to Rs 2 lakhs.
3] Interest Rates. The Small Savings Schemes like NSC, PPF, MIS etc, are very popular with the common man. They are very safe and secure. However they give very poor returns as compared to the various investment options provided by the banks. Presently the banks are offering over 10% per annum rate of interest whereas the Small Savings Schemes offer just 8% per annum. Hence the rate of interest on all Small Savings Schemes like NSC, PPF, and MIS etc should be raised to a minimum of 10% per annum.
4] Lock In Period. Under Section 80 C Bank Deposits are also eligible to claim tax rebate. But the lock in period is 5 years. This should be reduced to3 years to make them attractive as well as to bring them on par with Small Savings Schemes like NSC etc,.
5] Senior Citizen Age Limit. The age limit of 65 years to consider a person as Senior Citizen is very harsh on those who have crossed 60 years but are not treated as Senior Citizens. Almost all those who have attained 60 years are those who have retired from service. Their income is generally low but the medical expenses are very high. Therefore the age limit of 65 years should be brought down to 60 years to consider a person as Senior Citizen. The Finance Minister and the Prime Minister themselves are Senior Citizens and therefore know the problems of Senior Citizens very well. They therefore need to be more considerate towards the Senior Citizens.
6 ] Standard Deduction. While a businessman gets deductions for all the legitimate expenses incureed in conducting his business, a salaried person is deprived of any such deduction in connection with his job. The Standard Deduction should therefore be reintroduced with a limit of Rs 1 lakh.
7] Control of Inflation. Inflation and insufficient supply of food items and other essential commodities are main causes of concern to the common man. It therefore becomes matter of paramount importance to control the inflation and improve the supply of food items and other essential commodities through various budgetary measures.
It is hoped that the Finance Minister and the Prime Minister will do the needful in the forthcoming budget.