Nothing in it for us, hope indirect steps bring results

Abhay, Pooja Singh and their son Archit Sourced by The Telegraph

Abhay (47) and Pooja singh (38) live in Calcutta. Their son Archit (13) is in seventh grade. Abhay is a regional sales manager with a company involved in the farm sector, while Pooja is a home-maker. Abhay feels a middle class family needs three basic things -— health, house and child’s education. He hopes the government will focus on these in the budget. Pooja hopes the budget will encourage families to buy a reasonable preventive health insurance by increasing the limit of section 80D.

As a family with a substantial home loan and a school-going kid, they would want the deduction limit for tuition fees to be put under a separate section and not be clubbed under 80C. On deduction on home loan interest, Abhay feels that the limit should be increased to Rs 4 lakh considering the amount of interest he pays on his home loan.

Budget reaction

The budget is a big let-down as it could not meet our expectations directly. We hope that the increased foreign direct investment in the insurance sector will offer more options to citizens in future. This budget has extended support for affordable housing and the farm sector may be benefited in general. The focus on healthcare and infrastructure are indirect benefits. We can only wait and watch to see how it really trickles down to us

More money for health is a positive

Devjani Ghosh Shrestha Sourced by The Telegraph

Devjani Ghosh Shrestha (40) is a consultant ENT and a head-and-neck surgeon in Calcutta. To save on taxes, she buys life insurance plans and health insurance. She has a home loan too.

Devjani feels the Covid-19 pandemic has made people realise how important it is to shift the focus to the healthcare system. Devjani wants the FM to increase public healthcare expenditure, improve infrastructure from the primary to tertiary care level and not just focus on making healthcare cheap.

Incentives for private investment in healthcare infrastructure, especially in the remote areas, are a must. This can be achieved through a Private-Public Partnership Model.

As a doctor, Devjani wants increased budget allocation to promote telemedicine and digital healthcare. The Pradhan Mantri Jan Arogya Yojana should be extended to the middle class too.

On the personal taxation front, she feels the basic income tax exemption limit needs to be increased to Rs 5 lakh. This will reduce the tax burden as the pandemic has affected everyone in some way or the other. Also interest income on Senior Citizen Savings Scheme must be made tax-free.

Budget reaction

A 137% increase in healthcare budget with a promise to improve infrastructure from the primary to tertiary care level and increased allocation for funding scientific research are both positives. However, no relief for the tax payers on the personal front is a disappointment; Exemption of senior citizens above 75 years from filing I-T returns is quite a confusing move... should have been extended to all seniors...why 75 years and above? The extent of the benefit is also questionable

Why are only seniors above 75 exempt?

Chandana Dutta Sourced by The Telegraph

Chandana Dutta (62) retired as an administrative superintendent of a leading university in Calcutta. She lives in Calcutta with her husband and daughter. She saves tax by investing in LIC and medical insurance policies and mutual funds. Her insurance premium covers her 94 year-old mother and is deducted from her pension.

The two big concerns for Chandana is rising health costs and dwindling interest income. As much of her ailing mother’s expenses are borne by her, she feels costs incurred on basic necessities of the aged such as protein supplements, molly sheets, oxygen concentrator and wheelchairs should be allowed deduction under 80D along with medicines.

She also feels there should be a price cap on life-saving procedures taken regularly like dialysis and chemotherapy. Concessions on air travel for treatment should be made mandatory for seniors. The monthly expenditure on medicines is a big part of the household budget. She feels the amount a senior citizen spends on medicines and investigations on a regular basis should be eligible for deduction.

Chandana also feels retired people should be offered some home loan sops so that they can buy a small flat and not be a burden on their children.

Budget reaction

Exemption of senior citizens above 75 years from filing I-T returns will make life easier for a lot of seniors as compliance is a burden. But I am confused why those above 75 years will get the benefit. Wouldn’t it have helped if all of us were included? Why are we being left out from the one measure announced? More spending on healthcare is a good move

But unless we have money in our hands to spend how does it help?

Growth-oriented but no cheer for individuals

Chandani jain Sourced by The Telegraph

Chandani jain (27) is a chartered accountant working as an assistant manager in the finance and accounts section of a multinational company. Chandani invests in mutual fund SIPs, NPS and PPF though she feels the salaried have limited avenues to save tax. She also tries her hands in the equity markets but being risk-averse, she invest in small numbers.

Chandani has high hopes from Budget 2021. She expects the government to simplify the tax structure and increase the basic exemption limit to Rs 3.5 lakh per annum. The government may consider reducing the tax rates for incomes up to 12 lakh per annum or increasing standard deduction to Rs 1 lakh. Any of these measures, according to Chandani, will increase the money available with individuals for higher spending.

Further, she wants the FM to provide higher deductions on long-term savings to encourage more investments under Section 80C.

Chandani wants the FM to offer more deductions on educational loans to incentivise individuals to take their career forward.

Budget reaction

Hardly any tax saving measure for the salaried. Extending the tax holiday for affordable housing is, however, a positive. The government has also taken steps for faceless, and paperless dispute resolution which will make way for speedy and fair settlements. Salary, tax payments and TDS are already pre-filled. Now, capital gains, dividend income and interest income will also be prefilled. This is another big move towards digitisation and ease of filing returns.

On the macro level, the reforms announced under the new National Education Policy are in the right direction. Enlarging the ambit of the One Person Company will surely give a boost to start-ups as the burden of compliance comes down

Much-needed boost to tourism is missing

Tapan Roy Sourced by The Telegraph

Tapan Roy (39) runs his own travel firm. He invests in ELSS, PPF, LIC and mediclaim to save tax. He also keeps money in fixed deposits, while dabbling in equities too.

The tourism sector has been one of the worst-hit by the pandemic because of the restrictions globally on travel and as the owner of a travel company, Tapan is suffering a lot. Sadly, the sector has been given a miss by the government’s relief packages so far.

From 2020-21, the government has imposed a 5 per cent TCS (tax collected at source) on individuals travelling abroad with Indian travel companies. Tapan wants GST on tourism to be reduced, while TCS should be scrapped altogether. On the personal tax front, he is looking forward to some more reliefs under Section 80C. Finally, Tapan feels the budget should generate some positivity to enthuse the tourism sector.

Budget reaction

The budget is a big disappointment. There is no relief for taxpayers as the FM left the income tax slabs unchanged. The relief to senior citizens above 75 years from filing tax returns is probably the only positive feature. There is no relief package for the tourism sector. At least TCS for foreign travellers should have been exempted. Overall, the measures will not encourage entrepreneurs, who were forced to close their travel businesses because of Covid-19, to come back

Hospitality players completely ignored

Sudhir Ahuja Sourced by The Telegraph

Sudhir Ahuja (39) is an entrepreneur in the F&B and hospitality space. He is partner at a popular restaurant-cum-pub in Calcutta and managing director at his hotel chain.

Sudhir feels every penny saved is a penny earned! He invests his surplus in digital marketing and advertising. All the expense involved in marketing is tax-deductible.

For the hotel a huge tax saving benefit comes in the form of depreciation of F&F, of the kitchen and bar machinery and all fixed assets. He also donates a good amount to Round Table India to build schools for the under privileged.

Covid-19 has hit the hospitality and F&B industry hard. The sector has seen huge salary cuts and job losses. To encourage guest occupancy, GST on room bookings should be reduced from 12 per cent to 10 per cent. Since liquor is one of the biggest income contributors to the hotel business, he hopes the budget will bring liquor under GST, remove multiple state duties, waive licence fees and increase licence timelines. Sudhir feels a more flexible and tolerant financial environment can really give small hospitality players a chance to grow.

Budget reaction

Nothing in the budget for hospitality and F&B. Focus on infrastructure and specific mention of Bengal gives us a long term assurance of development to boost investments and tourism. But nothing promising for now. Thankfully no Covid cess. No change in corporate tax is a relief

The salaried have been left out in the cold

Uddipto Dutta Sourced by The Telegraph

Uddipto Dutta (28) is a data scientist with an e-commerce major in Bangalore. Uddipto invests in LIC, PPF and ELSS to save tax. He has recurring deposits and invests in mutual funds.

At present, Uddipto lives on rent in Bangalore and wishes to take a home loan that would give him tax relief and help him build an asset of his own.

Uddipto wants the finance minister to raise the basic exemption limit as well as increase the Rs 1.5 lakh limit under Section 80C. This he feels is too low as despite making long-term investments, he is unable to get the tax benefit on them.

Also, Uddipto feels the Rs 10,000 limit for tax relief on interest income under Section 80TTA should be relaxed.

Further, in these post-pandemic times, Uddipto wants the FM to enhance medical insurance benefits for senior citizens for whom the premium is too high.

Budget reaction

The budget is a no-show for individual taxpayers. Tax reliefs would have been welcome at a time salaries have been cut and increments held back. Higher exemptions would have left more money in the hands of individuals struggling with expenses and EMIs.

The move to exempt senior citizens from filing returns is no doubt welcome but mostly the salaried have been left in the cold.

The FM also did nothing to offer higher benefits in insurance, something which would have been very crucial now as we battle a health crisis. However, the Rs 2.24-lakh-crore allocation in healthcare and the Rs 35,000-crore outlay for Covid vaccines would go a long way in covering the huge healthcare costs that not all can afford