Finance Minister has removed std dedn of Rs 30,000 which was there earlier. In reply he said that since at that time basic exemption limit was raised from 50000 to 100,000 std dedn was removed. The FM should think before replying that std dedn was meant specifically for salaried employees whereas basic limit was meant for all assessees. The purpose for std dedn was to allow some exps for earning salary income as dedn similar to exps allowed on business income. Also as compared to inflation rate various dedn/exemption limits have not been revised. Eg medical 15000, travel allowance 800 pm. Also when there was deflation saving bank int was reduced to 3.5%. However when there is inflation the same should be revised to 6% and bank FD rates should be around 12%. PPF int should again go up from 8.5% to 12%
Why Chidambaran is a one sided person? I wonder any Finance Minister should first be a logical thinker and then an economist.
