A recently released Deloitte Pre-Budget Expectations Survey Report reflects what has been widely expected as an easing of income tax limits in Budget 2017. According to the survey, basic income tax exemption should be increased to Rs 5 lakh per year and the ceiling for claiming deduction under Section 80C should be increased to Rs. 2.50 lakh.

While almost all respondents in the survey want the I-T exemption limit increased substantially, 58 percent of them wanted the ceiling to be increased to Rs 5 lakh. As many as 71 percent respondents want the limit of the Section 80C to be increased to Rs. 2.50 lakh from Rs. 1.50 lakh currently.

Many reports in December said that the income tax slabs will be increased to at least Rs 4 lakh. However, a government spokesperson had denied that the income tax would be eased and called the reports baseless. After demonetisation, which has hit many industries and slowed economic growth to 7.1 percent in the most recent quarter, people are hoping to get some respite from the coming Budget.

Increasing the income tax ceiling would give consumers more money to spend, thereby increasing demand.

“The increase in the slab limit will kick-start savings, which will ultimately lead to increase in investment in the system,” stated the Pre-Budget Expectations Survey Report by Deloitte.

The existing deduction limit is low as compared to increase in income levels and inflation. “Increase in limit will help channelise household savings into productive avenues such as insurance, provident fund, equity and the like which will in turn help boost infrastructure spending and job creation,” the survey said.

It also added that the National Pension Scheme (NPS) should receive tax treatment parity with the Provident Fund (PF). As many as 88 percent of the respondents wanted full tax exemption for withdrawal of NPS. Withdrawals from the NPS are taxed up to 60 percent.

The PF, which is under Exempt – Exempt – Exempt (EEE) regime, is not taxed on withdrawal.

“The government has positioned NPS as an alternative to PF. Therefore, to bring parity and incentivise employees to be part of NPS, it must be brought under the EEE regime,” the report added.

In the survey, Deloitte said that the government is targeting boost in infrastructure spending and requires long-term funds for that. “Hence, it is an apt time to reintroduce deduction for investment in long-term infrastructure bonds as it will provide an additional avenue for individuals to make an investment and save taxes,” the survey suggested.

Respondents also added that deduction for investment in infrastructure bonds should be introduced with a Rs. 50,000 limit.

According to the Consumer Price Index released by the Labour Bureau , September-277, October-278 and November-277, the average CPI as on 31-12-2016 is 277.33. So the IDA from 01-01-2017 will be 119.5%; a reduction of 0.8%.
Yes, the New Year starts with a loss; thanks to Narendra Modi and the demonetisation.

Com.A.K.Padmanabhan, Vice President, CITU inaugurated the subject session of the 8th All India Conference of BSNLEU at 3PM on 31-12-2016 with an electrifying speech. Com.Balbir Singh Presided and Com.P.Abhimanyu welcomed. Coms.Raj Bahadur Rawal, President, Telecom Employees Association of Nepal, Com.M.Krisghnan, Secretary General, Confederation of Central Government Employees & Workers, V.Ramesh, General Secretary, AIIEA, V.A.N.Namboodiri, Patron, K.G.Jayaraj, General Secreatry, AIBDPA and Animesh Mitra, Secretary General, BSNL CCWF addressed.

The 8th All India Conference of BSNLEU has a rousing start at 10 AM on 31-12-2016 at Com.A.M.Patil Memorial Hall (Kamaraj Arangam), Chennai.Com.Balbir Singh, President hoisted the National Flag and Com.P.Abhimanyu, General Secretary the Union Flag.
An effective seminar was held at 1030 AM on “Service With A Smile for Revival of BSNL.” Com.Balbir Singh presided. Shri.Anupam Shrivastava , CMD,BSNL presented his views beautifully and effectively.He stated that BSNL being on the revival path with the joint efforts of both the staff unions and management,he is commited to implement the 3rd Pay Revision from 01-01-2017.Earlier,
Com.P.Abhimanyu delivered the key note address.Coms.Chandeswar Singh, General Secretary, NFTE, K.Jayaprakash, General Secretary, FNTO,G.L.Jogi, Chairman, SNEA, Sureshkumar, General Secretary, BSNLMS, Shivakumar, President, AIBSNLEA Shri.A.M.Gupta,GM(SR) CO, CGMs of Tamil Nadu and Chennai,and Com.Swapan Chakraborty, Dy General Secretary addressed.

Kannur District Branch , known for its ideal functioning, has organised an effective Study Class for the selected 90 comrades, on 28-12-2016. Com.N.Guruprasad, Circle Secretary inaugurated the class by taking the class on ‘organisation”. Com.K.Ramachandran, District Treasurer took the class on Pension Rules. Com. K.Kunhiraman, District Secretary handled the subject,”Medical Claims.” and Com.K.Rajan, Circle Asst Secretary spoke on different “Forms”. Com.P.V.Unnikrishnan, Circle Patron and District President presided.