The Modi government Budget is out and while Mr Jaitley has pumped in another Rs.1,000 crore into the Nirbhaya fund, the question is will women really benefit. After all, the main challenge is the allocation of the fund.
Another thing that’s not good news is the increased service tax rates that will put immense pressure on homemakers, as well as salaried women. Here’s a look at how it will affect your daily life.
Dining and dates to cost more: Now going out with your family or taking your boyfriend out on a date would be a much costlier affair all thanks to the increased service tax again; even a pizza delivery will be costlier now.
Beauty parlour visits to get expensive: A makeover will mean spending a small fortune. Even a simple haircut will cost more, forget about a pedicure or manicure!
Healthcare won’t be cheap: Looking to shed few kilos or get that dream figure? Be ready to pay more for your gym memberships.
Leather goods and purses might be cheaper: By now you must be feeling cheated, but here comes a good news for those who just love to shop for shoes and bags. The reduction in duties will make them available for cheaper prices.
I. Budget for Homemakers
Being a homemaker, every penny saved is a penny earned. What homemakers look forward to in the Budget is reduced pressure on account of an ever-increasing inflation, which has caused the prices of basic necessities like food, LPG and other important household expenses like the cost of education/ school fees for the children to go up. It has been rising without any respite for quite a few years now. But nothing had been announced in the Budget to address these concerns.
As a homemaker, their job is to save whatever money they can and convert that into some fruitful investments. Hence, our Finance Minister should have taken suitable measures to increase every homemaker’s savings by reducing the running costs and still maintaining a healthy lifestyle. He should have introduced some sort of maternity medical expenses benefit either through taxation or as aid (by giving a certain amount of funds for meeting the hospital expenses of a delivery). Also, he should have provided better education facilities such as rebate in education loans meant for a girl child in order to empower women.
II. Budget for Salaried Women
The Budget has introduced an additional limit of Rs. 50000/- contribution towards a New Pension scheme under 80CCD. Also, the limit under section 80D has been increased from the existing Rs.15000/- to Rs.25000/- on account of health insurance premium.
Some other highlights of the Budget for working women are investment in Sukanya Samriddhi Scheme will be eligible for deduction under section 80C and any payment from the scheme shall not be liable to tax.
Also, employee’s contribution to EPF will be optional without reducing employer’s contribution, for those earning below an income threshold.
The transport allowance will be increased from Rs. 800 to Rs. 1600 per month.
Other than this, there was nothing much in the Budget presented by Finance Minister Arun Jaitley today for salaried women. He hasn’t changed the income tax rates nor has he increased the exemption limits for individuals. On the other hand, corporate tax rate has been brought down to 25% from the existing 30%.
Though wealth tax is abolished, which is a good move, indirectly he has asked the details to be declared while filing your income tax returns which makes IT returns filing more complicated then what it is.
The pressing need for increasing the basic exemption limit of Rs. 2,50,000/to at least Rs.4 to 5 lakhs and additional investment limit for insurance premium for life and overall 80C deductions were not touched upon.
Another thing is medical reimbursement, which is still sitting at meager Rs. 15000/- should have been increased to Rs.1 lakh.
Demystifying the magical figure used by Mr. Jaitley of Rs. 4,44,200/- (Tax savings in your hand post budget)
Given the provisions of the Budget, I think we would be justified in asking Mr. Jaitley why he couldn’t reduce the tax rates for common people, if he could reduce corporate tax rates.
III. Budget for Start Ups and Young Women Entrepreneurs
The government is encouraging new start-ups and young entrepreneurs by investing 100 Cr to support start – ups. An initial sum of 150 Cr will also be used to create a world-class IT hub to take advantage of our competitiveness.
Apart from this, Rs. 20000 crores fund will be set up for funding the non-funded & SMEs.
All of these schemes are great but the implementation is highly doubtful, as Rs. 10000 crores was announced in the last Budget for the same but the real challenge lies in educating people to take the benefits and even if we can successfully do that, then how do we ensure that it will reach out to the needy in the era of every growing corruption?
Another disappointment is the Make in India concept as again they have offered benefits to those who will come and make in India, but what about those who are making it for India, because foreign companies will come and make in India and take the benefits away to their countries. When you announce funds for start ups, what about developing an ecosystem for nurturing them?
Image courtesy: BCCL
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