Union Budget 2013- Analysis Of Direct Taxes

A vast majority of salaried class employees wanted Finance Minister P Chidambaram to raise the income tax exemption limit to at least rupees three lakhs. It is very disappointing by not increasing the slab rates. The tax slab should be appropriately raised for more domestic saving and expenditure without which demand cannot be increased. Further the tax relief is increased only in respect of housing loan interest in cases of loans during the period 2013-14 and that too for fresh loans only. Besides the budget has many expenditure proposals without balancing it with income. The Finance Minister has promised to bring the Direct Tax Code (DTC) back to the house before the end of budget Session. However about the Goods and Services Tax (GST) not made any commitment this time.Therefore, the first impression one gets of the budget is that of an election manifesto that gets forgotten once the election gets over.