Union Budget 2013-14′s Impact on Aam Aadmi

Every year government proposes its plan of revenue and expenditure through its budget where it takes different measures to fulfill such budget. Union Budget 2013-14is no different but it was expected by the common man to give them some relief in the midst of rising cost food prices, the ceiling limit of cylinders, escalating petrol prices and various other factors that are affecting them.

Budget seems to be the only hope that a common man may cling to which might bring them some relief. The Budget for the year 2013 has definitely not brought many things that could be cheered by the Aam Aadmi but it also has neither taken away many things from them. So the budget has not affected common to a great extent but there are some points that could produce some effect on the common man. 

What is the relief in Income Tax for Aam Aadmi?
More or less a common first anticipates getting a relief on the tax front as it is the key place where they pay a substantial portion of their earning. The Union Budget 2013 definitely does not has brought as which was anticipated by common i.e. no change in the tax slab. Individual taxpayers who are earning level is up to Rs. 5 lakhs have been given small relief in the amount Rs. 2000 to them in the form of tax credit. One could also avail additional deduction of Rs. 1 lakhs on interest they pay on home loans over and above Rs. 1.5 lakhs. But the additional deduction comes with additional conditions that are to be fulfilled. The home loan should not exceed Rs. 25 lakhs and the value of the house should not exceed Rs. 40 lakhs.

Other taxes paid by Aam Aadmin as per Union Budget 2013
While the above affected individuals directly, on the indirect tax front there is also not some good news. Mobile phones have suffered an increase in the excise to 6 per cent which would imply an increase in price of mobile phones. Hanging in AC restaurants will also get a bit costlier as announced by our Finance Minister P. Chidambaram due to implication of service tax on it. Cigarettes also suffer an increase excise by 18 per cent due to its prices will go up. While on moral grounds the move will curb cigarette smoking. For women it was more golden budget as there was no change in the duty of gold import. Moreover the budget also raised the threshold limit of jewellery that could be brought by women who have stayed outside India for a period of more than one year, to Rs. 1 lakhs from the previous limit of Rs. 20000. The budget has also reduced the securities transaction tax for the previous 0.017 percent to 0.01 percent.

Women empowerment was the key focus in Union Budget 2013
Women also set receive their first all women bank where most of the employees working would be women. An amount to the tune of Rs. 1000 crore has been set aside by the Finance Minister to materialize this plan.

So to sum up the budget has neither taken nor given to much to the Aam Aadmi but they still need to figure out how the existing proposal in the budget would affect them and take measures accordingly.

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