Industry body Federation of Indian Chambers of Commerce and Industry (FICCI) has submitted following demands/suggestions in pre-budget memorandum to Finance Ministry:-
- The government should double the income tax limit for peak rate of 30 percent to Rs.20 lakh from the existing Rs.10 lakh.
- Overall deduction limit under section 80C of the Income Tax Act be raised to at least Rs.2 lakh.
- The deduction limit for interest on housing loan should be increased to 2.5 lakh.
- The tax exemption limit on expenditure in medical treatment by employer be raised to Rs.50,000 per annum from the existing limit of Rs.15,000.
- The exemption for payment of leave encashment be raised to Rs.10 lakh, from the current exemption limit of Rs.3 lakh for leave encashment paid to the employees at the time of retirement or otherwise.
- The deductions for education should be de-linked from Section 80C and should be provided under a separate provision like Section 80D of the Act for medical insurance.
- To reinstate the standard deduction for salaried employees to at least Rs 50,000 to ease the tax burden of the employees
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