Mumbai’s middle class pleased with income tax rebate and TDS benefits

MUMBAI: Interim finance minister Piyush Goyal appears to have struck the right chord as a slew of populist measures in the interim budget brought a measure of relief to the middle class that is weighed down by multiple pressures of price rise, sundry cess, and the lingering aftereffects of demonetisation and GST.

“I am happy that a certain rebate has been granted in income-tax, especially because the government disappointed us by withholding the customary increase in tax exemption limit last year,” said Sharon Singh (35), who is employed with a media house in Lower Parel. “The standard deduction has increased to Rs 50,000 from Rs 40,000 and gratuity limit has gone up too. TDS benefit on house rent adds to the bouquet of benefits for the salaried class...Even if the upcoming general elections is the motive, the announcements are welcome,” she added.

Small investors who park their savings in fixed deposits too were happy as the threshold for TDS on FD interest was hiked to Rs 40,000 from Rs 10,000. But Prakash Borgaonkar of Helpage India rued that the meagre monthly pension of Rs 200 for senior citizens was not revised.

Financial expert Gaurav Mashruwala echoed the satisfaction of the average salaried employee. “I was not expecting much from this budget as we thought it would be a mere vote on account...The I-T rebate and TDS benefits will help the public, especially single housewives who depend on small savings.”

The decision to devise monthly pension of Rs 3,000 for the unorganised sector will benefit carpenters, plumbers and electricians among others. “A freelance carpenter like me earns around Rs 17,000 a month, if we get steady jobs,” said Rajesh Vishwakarma from Kandivli (E). “It would be good to receive Rs 3,000 per annum after the age of 60, but what if I fail to invest the promised sum in the scheme each month? The government should also ensure that the benefits accrue to workers who return to their villages after retirement. We may deposit in a bank account in Mumbai, but need pension in UP.”

The trader community was divided in its opinion. Viren Shah who heads the Federation of Retail Traders Welfare Association said, “ Demonetisation and GST had caused job losses, but the measures taken today will bring marginal relief.” But Confederation of All India Traders secretary general Praveen Khandelwal said, “After the Centre renamed the Department of Industrial Policy and Promotion to the Department for Promotion of Industry and Internal Trade and denied an extension to FDI policy in e-commerce, traders were hopeful they would get due attention in the budget, but were left out.”