As we approach, the final quarter in the financial year, investment proof are to be produced. I used to ponder over, the reason behind asking for some of the investment declaration and associated proof required for them, always felt it can be made much more simpler.
There is no proof required for conveyance allowance of Rs 800/- per month, total deduct able being Rs 9600/- per year, whereas medical expenses up to Rs 15,000 is are considered reimbursable and we need to collect, save & produce bills otherwise its taxable. Any human being is bound get some kind of ailment from time to time, I do not find a reason to produce bills towards reimbursement, can medical expenses also be made as allowance upto limit of Rs 15,000?. At least, I can avoid collecting, producing bills and submitting them for verification.
The other one is use of food coupons per months such as Sodexo or ticket restaurant. Lets consider the amount of efforts that goes in towards this exemption, printing of these coupons, the distribution, usage of it and coupons getting converted into cash by food retail outlets, finally used coupons are turned useless and coupon paper re-cycled again. Instead of these food coupons, can it not be made as a allowance for deduction? At least by doing it government can save some trees used for printing these coupons.
- I tried a google search "home loan exemption", the results were all related India, as far as I am aware of only India has this exemption. Home loan exemption seems to benefit builders more than salaried class.
Interestingly, most of the developed countries have exemption, if there are dependents on the salary individual, like unemployed spouse or children, however one may not find such exemption in India.
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