Nine important features to look out for in Union Budget 2017 Autoplay Autoplay 1 of 1 Pre-budget expectations With few days to go for the annual financial plan presentation, finance minister Arun Jaitley may come up with various amendments in various clauses related to any number of Acts, but what is more important is the fact that individuals should get benefited the most.



Here are the pre-budget expectations from Arun Jaitley's budget 2017 speech:

Senior citizens do get some additional tax breaks such as higher basic exemption limit or higher deduction for medical insurance and the like. But, they are the worst hit in a declining interest scenario as they cannot afford venturing into riskier options to maximise their return in order keep their wellbeing/maintain their life style.There is an expectation that the basic exemption limit for senior citizens be raised from Rs 3,00,000 to Rs 5,00,000. Currently, section 80TTA allows deduction of Rs 10,000 for saving bank interest. The said limit may be increased to Rs 75,000 for senior citizens and scope of deduction should also be expanded to cover interest from term deposits and/or other fixed return saving instruments.Separate deduction of Rs 50,000 may be introduced for routine medical expenses such as consultation, medical tests, physiotherapy where hospitalisation is not needed. Currently only very senior citizens (those 80 years or more of age) get the deduction of Rs 30,000 under section 80D for medical expenditure and that too on a condition where they do not have medical insurance.Being the signing authority in a company’s overseas accounts is an integral part of their role. To report all those accounts, especially the peak balances, is a challenge and, where such individuals have left the employment during the year, they may not even have access to those accounts.Therefore, government may do away with such requirements and those entities to whom such accounts belong may make the relevant disclosure in their returns.Under the current regime of taxation of ESOPs, a notional benefit is taxed at the time of allotment of shares where even the actual gain is not realised by the employee. In fact, sometimes the actual sale of shares could result in a loss for the employee if, later on, the market value of shares comes down. In such a situation, the employee suffers a tax outgo at the time of allotment of shares and loss on sale of shares. Bringing the regime of one-point taxation at the time of sale of shares, which was prevalent prior to April 1, 2006, would indeed help to promote ESOP schemes.Young employees have greater hopes from this year’s budget. A few of them: increase the basic exemption limit from Rs 2,50,000 to Rs 3,50,000, re-introduce the standard deduction — 25% of salary or Rs 1,00,000 whichever is lower — increase the limit of Rs 1,50,000 under section 80C to Rs 2,50,000 and reintroduce section 80CCF for allowing deduction in relation to investments in infra bonds.Enhance the deduction of saving bank interest under section 80TTA from Rs 10,000 to Rs 25,000 and term deposit interest should also be covered therein for deduction, increase the limit of housing loan interest deduction from Rs 2,00,000 to Rs3,00,000. Leave Travel Assistance (LTA) is presently exempt twice in a block of 4 calendar years and that too is limited to actual travel cost within India. Keeping in view the stress level and wellbeing of young working class, LTA exemption should be allowed every year and even international destinations should also be made eligible for exemption.Until 2011-12, women tax payers used to get additional tax benefit in the form of higher basic exemption/tax rebate as compared to male tax payers. Reintroduction of the same will bring cheer to women tax payers. Allow separate deduction for deposits made in Sukanya Samridhi Yojana which are presently covered under section 80C.To encourage higher education of girl child, remove the cap of 8 years for allowing deduction for interest paid on loan taken for the higher education of girl child. In view of increasing trend of nuclear families and both the parents working, there is also an expectation to provide tax relief where crèche facility or an allowance is provided by the employer for the upkeep of children.