Increase in the Basic Income Tax  Exemption Limits for Individuals – To compensate partially for rising inflation it would be right move if govt. increases  basic exemption limit from the current Rs. 180,000 to Rs. 3,00,000/-.  The education cess of 3% is expected to be abolished. Similarly, the basic exemption limits for women and senior citizens may also be correspondingly increased.

 Increase in deduction under Section 80C / 80CCF –Present limit for deduction under section 80C of the Income Tax Act (the Act) of Rs. 1,00,000 in respect of certaininvestments such as Provident fund, ELSS, life insurance premium, housing loan repayment and 5 year bank deposits may be increased to Rs. 2,00,000. Similarly to increase the investment participation in infrastructure the deduction under section 80CCF may be increased to Rs. 40,000 from the current limit of Rs. 20,000. Increase in both limits will significantly encourage capital investment which will help in growth of slowing economy.

Increase in deduction for Interest on Housing Loans – It is desirable to increase the existing deduction limit from Rs.1,50000 to Rs.2,50,000 in respect of interest on capital borrowed for self-occupied property.  This will not only boost slowing Housing industry but also provide some relief to the taxpayers who are already finding it difficult to buy an house property due to skyrocket increase in prices of Housing propriety.

Increase in limit of Medical Expenses- Reimbursement -  The exemption limit of medical expenses reimbursement under section 17(2)(viii) was raised from Rs.10,000 to Rs.15,000 by Finance (No.) Act, 1998.Capital Gain index for the financial year 1998 was Rs. 150 and the same is 785 for financial year 2012. Showing and increase of more than 350%. In view of raising cost of medical expenses it will be appropriate if Government raises the limit to at least Rs. 60,000/-.

Increase in Threshold limit for Wealth tax - Currently, Wealth Tax is levied at the rate of 1% on net wealth exceeding Rs. 30 Lacs. We expect it to be increased to Rs.  1 crore.

„ Increase in the Basic Exemption Limits for Individuals
The general inflation rate is hovering between 6.5% to 10% in the financial year (FY) 2011-12. It is expected that increase in the
basic exemption limit from the current Rs. 180,000 to Rs. 225,000 could be a right move to provide relief to small and medium
income groups. Although the DTC had proposed a basis exemption limit of Rs. 2,00,000, its implementation has been deferred by
a couple of years and hence, it is appropriate to expect a higher basic exemption limit. The education cess of 3% is expected to be
abolished. Similarly, the basic exemption limits for women and senior citizens may also be correspondingly increased.
„ Increase in deduction under Section 80C / 80CCF
the recent economic data reflects a significant slowdown in new capital investment which is likely to slow down future economic
growth. To encourage savings and envisage more public participation in the growth of economy, the present limit for deduction
under section 80C of the Income Tax Act (the Act) of Rs. 1,00,000 in respect of certain investments such as Provident fund, ELSS,
life insurance premium, housing loan repayment and 5 year bank deposits may be increased to Rs. 1,50,000. Infrastructure has
been recognized as a key to growth of Indian economy. To increase the investment participation in infrastructure the deduction
under section 80CCF may be increased to Rs. 40,000 from the current limit of Rs. 20,000.
„ Increase in deduction for Interest on Housing Loans
To boost growth in the real-estate sector, and considering the constant increase in the cost of purchasing a house, it is desirable to
increase the existing deduction limit from Rs.1,50,000 to Rs.2,00,000 in respect of interest on capital borrowed for self-occupied
property.
Budget 2012 is expected to be transitional in nature which would pave the way forward for implementation of the Direct Tax Code
(DTC). Given the economic and political compulsions, certain wide ranging reliefs particularly for lower and middle income groups are
inevitable. Certain key expectations of individual taxpayers are as below.
„ Increase in limit of Medical Expenses- Reimbursement
The exemption limit of medical expenses reimbursement under section 17(2)(viii) was raised from Rs.10,000 to Rs.15,000 by
Finance (No.) Act, 1998. In view of the rising cost of Medical facilities and medicines, the exemption limit may be increased from
Rs.15,000 to Rs.40,000.
„ Threshold limit for Wealth tax to be increased up to Rs. 50 lacs
Currently, Wealth Tax is levied at the rate of 1% on net wealth exceeding Rs. 30 Lacs. We expect it to be increased to Rs. 50 Lacs.
DTC has proposed the threshold limit for wealth tax at Rs. 1 crore.