While senior citizens of both the sexes get a heightened tax exemption limit of Rs 2.4 lakh from the existing Rs 2.25 lakh, the working population has to contend itself with a token increase in the exemption limit by just Rs 10,000 — the exemption limit for non-senior ladies goes up from Rs 1.8 lakh to Rs 1.9 lakh, for non-senior males, the exemption limit goes up from Rs 1.5 lakh to Rs 1.6 lakh.

Tokenism always rankles, especially when viewed in the context of substantial benefit for other constituencies — those with a total income of more than Rs 10 lakh who hitherto had to pay a surcharge of 10 per cent of the tax, would be spared of this burden.

This is a substantial benefit for the higher income group.

Nobody grudges abolition of surcharge which is a surreptitious increase in tax rate; but the point is the aam aadmi should not have been fobbed off with a lollypop.

The broad-basing of Section 80E deduction to include any education at all — as against the existing emphasis on esoteric courses — after the school level would definitely bring succour to the parents of students from the lower strata of society but continuing to mindlessly confine the benefit to interest alone has dispirited many.

There is no reason why the principal portion of the education loan should not qualify for this tax benefit. That Section 80C deduction continues to be capped at an abysmal Rs 1 lakh has added insult to the injury.

Many, especially from amongst the salaried class, whose salaries have increased substantially in the wake of the Sixth Pay Commission recommendations were looking forward to a substantial increase in the limit for tax-oriented savings.

The Government ought to have loosened its purse-strings at least in this regard if for some reason it was constrained not to increase the general exemption limit substantially.

By encouraging tax-oriented savings, not only would thrift have been encouraged but, more importantly, the Government would have found moolah to bankroll infrastructure projects.

The salaried class has one cause to cheer though — abolition of Fringe Benefit Tax (FBT). To be sure, FBT is an impost on the employer and not on the employee but wily employers found ways and means to either pass on the burden to the employees vicariously or cut down on those expenses which were targeted by the FBT regime.

Another invidious tax, MAT, continues with vengeance — the minimum tax payable on book profits goes up from 10 to 15 per cent which is bound to impact the amount available for distribution of dividend.

To be sure, the additional tax paid on account of MAT can be set off within the next ten years instead of within seven years as hitherto but this set-off facility is a cold comfort given the fact that set off is not available against the tax payable that is less than the MAT rate.

In the name of widening the tax net, the presumptive taxation scheme has been extended to more categories of small traders and the presumed profit from their turnover which cannot be more than Rs 40 lakh as hitherto so as to qualify for this scheme has been increased from 5 per cent to 8 per cent.

But unfortunately the scheme is nothing to write home about in the absence of strict implementation. Nothing has been done to bring about seriousness in its compliance. So much so, small traders would continue to cock a snook at the income-tax regime.

That they are being wooed with exemption from payment of advance tax with the option to pay tax along with the return does not make the scheme more effective.

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