Budget 2012: Majority of staff expects tax exemption limit to Rs 3L, says a survey
NEW DELHI: A majority of employees surveyed expect Finance Minister Pranab Mukherjee to increase the income tax exemption limit to Rs 3 lakh in the upcoming Budget, in line with rising inflation, Assocham has said.
“Over 89 per cent of respondents said the slab of tax-free income has not moved up in line with the real inflation. Therefore, there is a need to increase the basic exemption limit to Rs 3 lakh, as it will spike up the purchasing power of individuals and stimulate demand,” the survey by Assocham said.
At present, the income tax exemption limit is Rs 1.80 lakh.
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The chamber has surveyed about 500 employees, working in sectors like manufacturing, IT/ITeS, power and FMCG, from cities including Delhi, Mumbai, Kolkata, Chennai and Pune.
A hike in exemption limits will enhance people’s disposable incomes, which, in turn, will boost consumption spending as well as savings, the study said.