Budget 2011: Common man's reaction

Finance Minister Pranab Mukherjee in New Delhi July 7, 2009.

NEW DELHI (Reuters) - Pranab Mukherjee announced that personal tax exemption will be raised to 180,000 rupees in FY2012.

A new category will be created of very senior citizens eligible for higher exemption limit of 500,000 rupees.

Mukherjee also extended 20,000 rupees exemption for investment in infra debt funds for another year.

Here are some reactions by people to the budget:

VIJAY KUMAR, retired member, Delhi electricity commission

“The age limit for special senior citizen category is too high for 5 lakh exemption. 70 with exemption between 3-5 lakh would have been better.”

VEENA MALHOTRA, professor

“Not happy with raise in exemption by just Rs 10,000 in senior citizen category particularly for those in teaching jobs.”

VIJAY CHAWLA, Architect

“It is not much. We were expecting minimum Rs two lakh” (in reference to the increase in personal income tax exemption limit)

SHAMSHER SINGH, Entrepreneur

“It is not just the increase in that limit, from the point of view of the common man, the basic bread and butter becomes very high to sustain. The tax limit increase is good, but had they increased it even more it would have been better”

AMISHA GUTGUTIA, PR professional on infra bonds exemption limit continuing

“Happy for sure but better rate of interest is always welcome”

C P SINGH, 61, army colonel

“The people are from his government who are being caught up in various scams. So who is he talking to? Who is he trying to influence? How will he tackle it? Will he catch all the people from his party and put them in jail”

DINESH KUMAR, 26, analyst

“I am happy with this budget. He hasn’t raised excise duty on many items which is a good thing.”

RAJNEESH ARYA, retired engineer

“At the age of 70, I don’t care much about small exemption as much as I care about exemptions from pension money. I haven’t heard about lowering the maturity period”

PRABHA KAMBLE, vegetable vendor

"What will the finance minister do for people like us? We have to buy vegetables at high prices and when we try to make a margin, customers complain. I don't think any budget will change our situation"

DINESH KUMAR, 26, analyst

“The announcement in this budget gives relief to infrastructure sector. The government has increased the FII participation in the corporate infrastructure bond to $40 bln from $20 bln. Also this year, exemption under section of 80CCF and issuance of tax-free bonds would provide support to the infrastructure funding requirement. This year government has raised the infra spending budget to 2.14 lakh crore

from 1.76 lakh crore last year. I think this year we may see lot of infra projects announcement and growth of the same.”

PRIYANKA PEREIRA, media professional on income tax exemption limit

“It's not earth shattering but it's all right. At least something is better than nothing”

K S BALA, businessman

“I am a businessman. If I were the finance minister of India, I would give amnesty…bring all the black money in and make the country rich.”

ARCHANA SADANAND, publicist

"The exemption raised is a good sign for the working class who would get a breather. The real test would be to combat rising prices which affects all and for the first time you have the masses and classes aspiring to check inflation"

MOHIT OBEROI, businessman on ‘tax exemption limits’

“We were expecting around two lakh. That is what the market speculation was, just raised about 20,000 which is hardly anything”

MOHIT OBEROI, businessman on ‘new senior citizen category’

“Who has seen 80 years of age these days? I think it’s just segregating and creating more confusion”

HRISH THOTA, filmmaker

“Reducing senior citizen slab from 65 to 60 is really good as my dad is 60 and he is still earning as professor. It will be beneficial for him. Many private organisations have 60 year old people still working as they are quite hale and hearty so it's good to increase tax exemption for them”

ANKIT JAIN, 28, finance professional

“The pension age is going to be a very good thing for people in that bracket. But it affects a very small population of the country. It’s more of a populist measure.”