As many as 46% of those who responded to a poll ahead of the Union Budget wanted the minimum income exemption limit raised significantly.
In the poll conducted by the citizen engagement platform LocalCircles (https://www.localcircles.com), 44% respondents wanted an increase in the medical exemption limit.
Among the other major demands, 68% wanted the rate of Tax Deducted at Source to be reduced from 10% to 5%.
• 46% citizens want significant increase in minimum income exemption limit
• 44% of citizens want increase in medical exemption amount
• 68% want TDS rate to be reduced from 10% to 5%
• 42% want Government to drive economic growth via infrastructure investment
• 54% want Roads and Highways to be the top investment area
More than 200,000 participated in the poll across 300 cities and over 100,000 votes and comments were received across various polls and discussions.
In addition to quantitative polls, qualitative discussions were conducted to understand what the common citizen wants from Budget 2016.
Similar to the Rail Budget 2016 citizen consultation exercise, this exercise was another excellent example of participative governance and making governance citizen oriented.
Detailed results of the Citizen Consultation on Budget 2016 are given below.
Poll # 1 – Top Taxation Relief Wanted from Budget 2016
Poll # 2 – Top Exemption Increase Wanted from Budget 2016
Poll # 3 – TDS rate Reduction from Budget 2016
Poll # 4 – Growth and Fiscal Strategy for Budget 2016
Poll # 5 – Top Investment Sector for Budget 2016
Top Priorities for Budget 2016
1. There should be a significant increase in Minimum Exemption/General Deduction Limit upto 5 lakhs a year
2. Medical exemption needs to be increased from the 15,000 per year amount
3. TDS deduction percentage should be cut to 5%
4. Government needs to invest in infrastructure to boost economic growth
5. Excise duty on petrol and diesel must be reduced
6. Service Tax on essential services must be reduced
7. Cess must not be charged till effective deployment model is proven
8. Education exemption is unrealistic and must be rationalized
9. Deduction amount of interest on housing loan should be re-evaluated
10. Investments in Health and Irrigation sectors must be given a priority
11. GST must be introduced as early as possible.
Secondary Priorities for Budget 2016
1. IT exemption limit may be raised to 7.5 lacs for senior citizens
2. Extra interest rate for senior citizens reduced recently from 0.55 to 0.25% be increased to 1%
3. TDS & service tax should not be deducted from payroll of temporary employees who have no EPF &PRAN numbers
4. Provision of no deduction of any tax/cess should be made on tenders accepted at 15% or more below the estimated cost
5. Higher incentives should be given for pulses production and export oriented agricultural products
6. Minimum interest rate on fixed deposits to be 9% as is proposed for PPF. The interest earned should not be tax
7. Tax on pension should be removed or should be applied on amounts of more than 50000
8. Deduction under section 80(D) be raised to Rs 50000/ per annum
9. Minimum income slabs for ladies should be increased
10. The rate of income tax for individuals should be decreased so that more people are encouraged to pay taxes
11. The limit of exemption u/s 80C should be increased to Rs 3 lakhs
12. Provide house rent deduction to pensioners as is the case with employed people.
13. Kerosene subsidy should be eliminated.
(All data and poll results are an exclusive copyright of LocalCircles)
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