The Vote on Account has come in according to expectations on the tax front. As far as direct taxes are concerned there are no changes in keeping up with the convention for such events. For the individual taxpayer this means that they have to start the next financial year based on the situation that they face currently which translates into a continuation of what they are doing. The investment limit under Section 80C is thus restricted to Rs 1 lakh and the basic exemption limit stands at Rs 2 lakh for those below 60 years, at Rs 2.5 lakh for those between 60-79 years and Rs 5 lakh for those who are 80 and above. The relief for individuals is on the expense front as excise duty cuts in the automobile space and consumer durables will ensure that several of their purchases will get cheaper in the next few months. This is good for all those who have such purchases planned as it means a cost savings but the downside is that these are large ticket purchases. Even locally manufactured mobile phones will get cheaper. There is also a benefit in terms of a moratorium on educational loans that were taken before 2009 so several students will benefit on this front. This means that the budget for the individual household will remain under pressure if the higher inflation continues going ahead.
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