Dear Finance Minister, We don't expect magic, just a little understanding and some tax relief that feels like a real reward, not a bare minimum.
A little extra fuel in our wallets could go a long way, pleads Vatsal Ramaiya
Illustration: Dominic Xavier/Rediff.com
Imagine walking into the finance minister's office, wish list in hand, ready to whisper the dreams of every salaried person. What would be on that list? Let's peek inside:
1. A Bigger Pay Check, Please
- Hike up the standard deduction limit from Rs 50,000. After all, laundry doesn't get cheaper, education fees keep soaring, and that extra Rs 10,000 would be like finding a hidden bonus in your wallet.
2. Investment Freedom
- Expand the Section 80C limit! Rs 1.5 lakh feels like trying to fit a lifetime of goals into a tiny piggy bank. Give us at least Rs 3 lakh, so we can build a secure future without tripping over tax rules.
3. Healthcare Haven
- Double the Section 80D limit for health insurance. Pandemic or not, health bills aren't exactly pocket change. Raise it to Rs 50,000 for us and Rs 75,000 for our parents, so peace of mind doesn't come with a tax penalty.
4. Rent Relief
- Rs 60,000 for house rent deduction feels like trying to find a flat with a telescope. Bump it up to Rs 1.2 lakh, because paying rent shouldn't mean sacrificing a good meal.
5. A Tax Rebate Fiesta
- Rs 7.5 lakh tax rebate sounds like sweet music to our ears. More money to spend, invest, or simply breathe easy knowing less goes to the taxman.
6. Home Loan Heroes
- Unchain the Section 24(b) limit for home loan interest. Rs 2 lakh is a drop in the ocean when loans and prices keep rising. Give us some flexibility, so owning a home doesn't feel like a lifetime tax sentence.
7. Capital Gains Guru
- Lift the cap on deduction under Sections 54 and 54F. Limiting it to Rs 10 crore feels like saying, 'Congratulations on your success, now give us a bigger slice.' Let us reinvest wisely, without feeling like winners who lost.
8. A Level Playing Field
- Give the old tax regime some love too! Increase the rebate limit and maybe even consider adding deductions for home loans and medical expenses. After all, a little competition keeps both regimes sharp and benefits everyone.
These are just a few wishes from the heart of a salaried person. We don't expect magic, just a little understanding and some tax relief that feels like a real reward, not a bare minimum.
A little extra fuel in our wallets could go a long way.
Vatsal Ramaiya is a personal finance expert with 16 years of experience with India's top mutual fund houses. He blogs at mfnow.in