Moneycontrol » News » Budget News Income Tax: Aam admi's woes: Service tax will eat up household Budget

Finance Minister Pranab Mukherjee announced on Friday that personal tax exemption will be raised to Rs 200,000 in financial year 2012/13.

Here are some reactions from the man on the street:

Atul Jain 30, businessman "We were expecting the tax slabs to go up to 3 lakhs - it's not up to expectations."

Thirty-three year-old Bhanu Pratap, a life insurance exec said :"The past four years, the slab has been increased by Rs 20,000 whereas incomes are rising faster than that. I'm not satisfied."

Another 30-year old marketing executive Kunal said that the average income of the people is more than Rs 2.5 to Rs 3 lakh. " So the increase in the tax slabs is not enough."

Tanyan Gautam, a banker admitted that take-home salaries will increase. " Even Rs 5-10K more each month is great because it helps in personal expenditure, children education and other things."

Rahul Nair, 30, said the move would arr around Rs 45,000 to his annual income. " It is a good move."

Anupriya Kumar, a journalist had hoped that Pranab-da would raise the tax slab to atleast Rs 3 lakh. " Rs 2 lakh is no improvement at all. Govt's messed up its finances over the past year so obviously cannot announce too many incentives. Excise duty up, service duty up as well -- things will be more expensive. Stupid, ineffective budget."

For Deepak Sharma, an assistant manager at an MNC, the hike would not make much of a difference but it can help those who earn between Rs 8 to 10 lakh.

DEEPAK SHARMA, 25, Assistant Manager at an MNC "In my salary bracket, this budget will not make much of a difference, but it will help those employees who earn between 8-10 lakhs."

Prince Madan, 44, works with Mitsubishi and says that he will be able to save around Rs 22,000 a month. But since indirect taxes have gone up, he laments that his savings will be nullified.

Waseem Mushtaq, another journalist feels it is an unfriendly budget. " eating at a restaurant, phone bill, air travel has been increased ... these are one of the important things of one's life at the moment ... for me it is highly disappointing budget."

Twenty-six-year-old Sagar Dixit says the increase in excise duty and service taxes will be a huge burden for the poor as they are already dealing with inflation. "It was not a budget for the poor."