While the FM has increased the IT slabs, there is not much to rejoice for a common man. There has been an increase in the Petrol/Diesel costs, i.e. Rs. 2.67 a litre and Rs.2.58 per litre, This will also impact the prices of all commodities. In last 1 year there is a 100% hike in every commodity. The peanut reduction in taxes on the face while increasing petrol prices is actually like backstabbing the common man.
The current tax slabs are infact adversely impacting the ‘net take home pay’ of the salaried ‘aam aadmi’. An individual earning income through business or profession is allowed to claim a deduction in respect of any business expenditure incurred by him. However, a salaried individual is left with no such options. Even the clause relating to standard deduction to salaried individuals has been omitted by the Finance Act 2005, leaving no such benefit to the salaried individual. Atleast the zero-tax slab should have been raised to 2-2.5 lakhs, instead of 1.6 lakhs.
Year after year, prices continue to rise. Yet according to our tax structure, the cost inflation index is applied only for the purposes of levying capital gains tax. We also have to realize that despite the recent increase of GDP growth rate to 7.20 per cent, this has not helped the salaried individuals.
There is also no increase in the internal security; defense allocation is also marginal, compared to the contact fear of terrorist attacks the common man is living in.
To change the current reaction of the aam aadmi, which is “rich get richer, rest get consolation”, the Budget 2010 has not meet his expectations.