[cajobportal Insights] Jalebi for the Urban Diabetic

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In the run up to the 2019 elections, Bharat i.e. Rural India has got its share of in form of a mega health insurance scheme, free electricity, use of Hawai Jahaj by ones wearning Hawai Chappal, affordable houses, toliets and more

If you are in India i.e. Urban India, you will feel like missing the Modicare bus

If you are a salaried individual, you are one of India\’s \’forced to be honest\’ class, which paid average tax of INR 76,306 p.a. of tax (INR 1.44 lac crore/1.89 crore returns) as compared to business class including professionals who paid average tax of INR 25,753 p.a. of tax (INR 48,000 crore/1.88 crore returns) [ AY 2016-17 ]

In return, you will now be:

a) Getting a tax relief of INR 1,800 p.a. : A standard deduction of INR 40k in lieu of travel and medical expense reimbursement, which currently is 19.2k+15k p.a. So 30%+cess on the differential

b) Health Insurance Deduction of 50k instead of 30k, if you are senior citizen

c) Tax free interest income of 50k instead of 10k ( which now also includes FD and Recurring Deposit instead of just Savings Account earlier),if you are senior citizen

But also pay

a) Higher cess of 4% instead of 3% on your income tax

b) Long Term Capital Gains of 10% without indexation from equity( in case its more than 1 lac) and there are complex grandfathering clauses) . Your Equity Oriented Mutual Funds will now face a dividend distribution tax

Its a shattering news to those who booked INR 3.67 lac crores as Long Term Capital Gains in their returns . Remember there is no removal of Securities Transaction tax

c) The gates for Cryptocurrency Trading gains are now almost closed

d) Pay higher food prices as Minimum Support Prices of crops are now 1.5 times their cost

if you are a Corporate with turnover upto 250 crores, you pay lower taxes of 25%

The fiscal deficit numbers are also not something to be happy about

So, in all, since I am in Urban India, I am feeling like repenting my decision not to stay in Rural India. Its like jalebis have been offered but I am a diabetic and hence of no use to me

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What are your views?

Would have to hear from you

Thanks & Regards!!

Sonia Singal : cajobportal.com