New Delhi: Last year’s Budget was a mixed bag for those newly in the job field. On one hand it removed the benefit of standard deduction, which was earlier available.
Further, the fringe benefit tax or FBT impacted their take-home. On the other hand, it gave some relief to them by introducing liberal provisions such as reducing tax rates. Now with the new budget coming closer, these youngsters have several dreams.
BV Raman, working in Mumbai for the last 2 years with an investment company, has mixed feelings. He says, “The last budget has given growth opportunities to me as it has opened up the financial sector. The stock market is also on the rise since last year due to all these changes. It has had a positive impact on salaries. But several benefits given by the employer are also taxed now. I would especially like a situation where car loans and home loan given by employers should not get taxed as perquisites”.
Ratul Saha, who joined GE Capital a month back, also seems to want tax-free benefits from his employer. Ratul has to travel frequently for job purposes and wants that the traveling costs should be completely reimbursed by the employer and such payment should not be taxed.
Clearly, the fringe benefits tax and taxation of perquisites has not gone down well with these youngsters. Tax expert Subhash Lakhotia feels that their demands are justified. He says, “Fringe benefit tax should be removed. All genuine business expenditure which have no relevance to fringe benefits for employees should be taken away from the purview of FBT.”
But at the same time, young income earners are happy with the way investments are being incentivised. Says Saha, “The incentive given for investments has reaped profits for us”.
Sudipto Banerjee, a private sector employee for over 3 years says, “Mutual funds have been made more investor friendly. People can now benefit from mutual funds as they are giving high returns, instead of bank deposits, which is giving a lower interest.”
Banerjee’s only demand from the budget is for a speedy procedure of sanctioning and disbursing home loans, by removing paper requirements. He complains, “I had applied for a house loan in last September, but it has been sanctioned now. It would help to have quicker loan granting norms.”
A bit of wishful thinking sees them all demanding the tax slabs to be raised so that the taxable income starts from a higher level. February 28 will tell if their dreams can come true.
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