By IANS,
Bangalore : Salaried residents of Bangalore have welcomed the proposed increase in income tax exemption limits for women and others by Rs.10,000 and scrapping of the fringe benefit tax (FBT).
Senior citizens in this IT hub are also happy with an increase in their tax exemption limit by Rs.15,000.
Out of six million population in the city, an estimated 565,668 are elderly people.
The exemption limit will now be Rs.240,000 for senior citizens, Rs.190,000 for women and Rs.160,000 for others.
“Increase in income tax exemption limit by Rs.10,000 for women and others is a relief for salaried people like us, who are struggling with steep price rise in essential commodities in recent times,” Padma Kumar, a government employee, told IANS.
Echoing Kumar, Shekar Sastry, working with a private firm, said that increase in income tax exemption, though not by very significant amount, had taken some burden off the salaried class.
“The move is positive and we welcome the announcement by Finance Minister Pranab Mukherjee,” said Sastry.
As the city has large number of corporate houses, the scrapping of FBT has brought a smile to both employees and employers.
“Scrapping of fringe benefit tax is a good decision by the government. It was a draconian tax system and now companies will not think twice to give perks to their employees,” said Sunil Prabhu, who works as a head of human resource with a multinational company.
“Now, companies can offer perks like cars, accommodation and stocks to name a few, without thinking twice,” said Mallika Tiwari, who works as a quality analyst with an IT company.
Women are also happy that the income tax exemption limit been raised to Rs.190,000 for them.
“This shows pro-women policies of UPA (United Progressive Alliance) government at the centre,” smiled Pallavi Shetty, who works as an executive with a BPO.
Senior citizen Ranjan Hegde said that as elderly people “we are relieved to see increase in income tax exemption limit by Rs.15,000”.
“In these times of huge price rise, such a benefit is a great relief for senior citizens. I welcome the government’s move,” said Hegde, who is a retired government employee.