Suggestions for Budget 2019-20

Sri K. C. Varshney,

Joint Secretary,

Tax Policy & Legislation,                                                            1st May, 2019

( TPL-1 ), C.B.D.T.,

North Block,

New Delhi-110001

Dear Sir,

                        REG: SUGGESTIONS FOR BUDGET OF THE YEAGR 2019-20

                        =============================================

    This is in reference to the message circulated by your office inviting suggestions for the formulation of the budget for the year 2019-20.

    I would like to bring to your kind notice that the SUPER SENIOR CITIZENS, in the age group of 80 years and above need special consideration in the budget inasmuch as that such citizens depend for their sustenance on interest income of their Fixed Deposits in the banks and post offices and those, who have retired, on the meagre amount of pension they get from their employers. It is well known that the interest rate on Fixed Deposits these days have come down substantially and these are likely to come down further with the passage of time and, therefore, thIs category of citizens need some special consideration in the proposed budget such as under:-

(a).    The total interest income on Fixed Deposits of banks and post offices in their hands 

          should be completely exempted from income tax. Because after deduction of 

          income tax, the amount paid is quite low and not sufficient to make both ends meet.

(b).    The lock in period of Senior Citizens Savings Scheme should be cut down to three 

          years from the present period of five years so as to bring in line with the Tax Saving

          Mutual Fund Schemes, so that this category of citizens may enjoy their

          capital in this post office scheme in their life time. The lock in period of five years

          is too long a period at such an advanced age in comparison to tax saving mutual

          fund schemes.

(c).      The amount of pension in the hands of this category of citizens should be made 

            completed exempted from income tax.

(d).    The amount of exemption of premium of mediclaim policy under Section 80-D of 

            Income Tax Act should be increased from the present limit of Rs 25,000/- 

            to at least Rs 30,000/- as the premium amount at such advanced age is quite

            substantial. 

    I would also like to state that in the last year budget LONG TERM CAPITAL GAINS has been imposed on security transactions, which was abolished long ago. Now a share holder has to pay security transaction tax as well as LTCG tax, and it amounts to double taxation. If LTCG tax has to continue, the security transaction tax should be abolished.

I hope these suggestions would receive favourable consideration and the super senior citizens would get substantial relief in the coming budget.

Please acknowledge receipt.

Thanking you,

Yours faithfully.

S R Agarwal

A-59, Rosewood City

Sector- 49

Gurgaon- 122018

Haryana

Mob: 8527571711

Email: sragarwal1@yahoo.com