Coming Budget 2012, there are many expectations and few expectations on Direct Taxes for Individuals are:

  1. Increase basic exemption limit from the current Rs. 180,000/- to Rs. 3,00,000/-.
  2. Removal of education cess, which is currently at 3%.
  3. Increase in deduction Under Sec 80C to Rs. 2,00,000/- pa (Currently at Rs. 1,00,000/- pa max)
  4. Increase in deduction Under Sec 80CCF (Investment into Infrastructures Bond) to Rs. 40,000/- pa (Currently at Rs. 20,000/- pa max)
  5. 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)
  6. Increase the threshold limit for Wealth tax to Rs. 1 Cr from existing threshold of Rs. 30,00,000/-.
Some expectations from Budget 2012 on Direct tax

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