Opportunity for govt to free citizens of some tax burden

Nagpur: With elections just a few months away, the budget is one last-ditch effort which the government will use to woo a cross-section of people. The sentiment echoes among the aam janta too, who are expecting some easing of tax burden.
“The salary class is the worst-hit under the current tax regimen,” said chartered accountant Anirudh Shenwai. “After demonetisation, the government had hoped to mop up sufficient funds to create a tax surplus which could have led to lowering of tax rates. But that did not happen,” he said.

“In this last budget of the government, there is a need to provide relief to the middle class and start-up entrepreneurs, but most importantly for senior citizens who rely on savings which are taxable,” he added.

“I would like the government to provide some relief in terms of allotting dedicated real estate at nominal charge for start-ups,” said Manish Khanchandani, who started a food business four years ago. “It would be a big help if the number of government-sponsored accelerators is increased, especially in smaller towns,” he added.

The excruciatingly high interest rates levied on education loans is also one area where young voters are expecting relief. “An MBA degree sets you back by at least Rs20 lakh and the package offered initially is of barely Rs6 to 8 lakh,” said Apoorv Nilakhe, a management student. “The interest rates charged is very high and a compound rate of interest is charged if the interest is not paid, which further increases the burden,” he said.

“Besides, the interest paid on loans can be claimed as deduction only for eight years making the EMIs very high. This period should be increased up to 12 years,” he added.

Having paid taxes all their lives, senior citizens too expect relief from the government. “The high rates of taxes are often compared with European countries, but there they have social security. It is unjust to expect people to pay taxes and get nothing in return on retirement,” said Sunil Khankhoje, a senior citizen who was in business.

Pitching for increase in the limit of investments under Section 80c, financial adviser and insurance agent Bharat Parekh said, “I want the government to remove GST from insurance policies and mutual funds; currently, it is charged between 3 % and 18%. Also, the disparity in tax savings for higher tax payer and lower tax payer should be removed; the bigger tax payer saves more currently,” he added.