Coming Budget 2012, there are many expectations and few expectations on Direct Taxes for Individuals are:
- Increase basic exemption limit from the current Rs. 180,000/- to Rs. 3,00,000/-.
- Removal of education cess, which is currently at 3%.
- Increase in deduction Under Sec 80C to Rs. 2,00,000/- pa (Currently at Rs. 1,00,000/- pa max)
- Increase in deduction Under Sec 80CCF (Investment into Infrastructures Bond) to Rs. 40,000/- pa (Currently at Rs. 20,000/- pa max)
- Increase in deduction Under Sec 80E (In respect of interest on capital borrowed for self-occupied property) to Rs. 2,50,000/- pa (Currently at Rs. 1,50,000/- pa max)
- Increase the threshold limit for Wealth tax to Rs. 1 Cr from existing threshold of Rs. 30,00,000/-.