These allowances in salary slips should be raised by FM
The salaried class would be eagerly awaiting finance minister Arun Jaitley's maiden Budget speech, likely in mid July. And why not. Just a month before the NDA won the elections with a huge majority, Jaitley had suggested that the Income Tax exemption limit should be raised to Rs 5 lakh from Rs 2 lakh currently.
Industry body CII in its report titled Pre-Budget Memorandum 2014-15 has outlined a slew of changes that should be made by the FM in that section of the Income Tax Act, which impacts the salaried class.
Below are the excerpts from the report
> Section 17 of the Income Tax Act, 1961 has been amended to include superannuation contributions made by an employer to the account of its employee as a perquisite. Accordingly, as per Section 17(2) (vii), superannuation contribution by the employer in excess of Rs 1 lakh would be considered as part of the employee’s salary income; thereby increasing the withholding tax liability in his hands..
> Provision to section 17(2) of the Act, medical reimbursements not exceeding Rs 15,000 per annum for employee and his family are exempt. This limit needs to be revised and limit for exemption for medical reimbursements should be increased to Rs 75,000 per annum
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