The Standing Committee on Finance, headed by BJP leader Yashwant Sinha, suggested the following amends for Budget 2012:
- Increase the exemption for personal income tax from Rs 1.8 lakh to Rs 3 lakh
- Linking tax slabs to consumer price indexes which would automate adjustment of tax rates.
- Considering exempting insurance policy dividends from dividend distribution tax.
The Committee expressed its faith in the Government that the suggestions will be looked into seriously.
On the other hand, finance minister Pranab Mukherjee looks forward to increase the budget target for tax collection for this financial year. He has already announced a 10% raise in tax collection for Tamil Nadu.
