K.V.Aravindakshan, Manager (Internal Audit), The Keala Minerals and Metals Ltd.

From aravind kv, aravindkv@yahoo.com
To BudgetTwentyTen@gmail.com
Date Mon, Feb 8, 2010 at 9:42 AM
Subject Budget expectations

The standard deduction allowed to the salaried taxpayer has been discontinued from the year 2005. In the present environment salary earners have to incur considerable expenditure. There is no consideration for the expenditure incurred by the employee like cost of vehicle maintenance, transport, newspaper, books etc. in the performance of his duties for which he gets paid by way of salary. When all other assesses are getting deductions for income on producing details of expenditure. There seems to be no reasons for denying such deductions for salaried class. The standard deduction need to be restored since the expenditure on this account is very high and salaried class should have some relief. The basic philosophy underlying the computation of income is that only net income should be charged to income tax and not the gross income. By discontinuing the standard deduction the gross income is considering for tax and this should be changed and at least an amount of Rs. 50,000/- need to be exempted by way of standard deduction for the salaried class.
At present a salaried person does not get any deduction for expenses incurred for the purpose of employment, though he necessarily incurs expenses for the purpose of employment. Disallowing standard deduction from the statute may amount to taxing gross income as against the concept of taxing net income.
The exemption limit under section 80C has to be increased from the existing 1 lakh to at least 3 lakh considering the increase in wages. In order to give importance to investments in infrastructure sector the limit need to be enhanced with a condition that certain investment should be in shares of companies belonging to infrastructure sector. This will be an added advantage to the tax payers to increase their investment culture and good for the nation also.
K.V.Aravindakshan

Brief Profile:Currently working as Manager (Internal Audit) in a state public sector undertaking ‘The Kerala Minerals and Metals Ltd’. Have 34 years experience in manufacturing sector in various fields like data processing, Internal Audit, Finance etc.