Finance Minister Nirmala Sitharaman is going to present the Union Budget on 1st February. It is going to be a unique budget in many ways. The general budget for the financial year 2022-23 can be full of hope for the people stricken by the COVID-19 pandemic. Finance Minister Nirmala Sitharaman can make some special arrangements for taxpayers this time. Individual taxpayers are not looking very happy about the new tax slab. A total of 5.89 crore taxpayers have filed returns in the assessment year 2021-22, but only 5 per cent of these people opted for the new tax regime. Keeping this in mind, this time with certain conditions, benefits like standard deduction and tax relief on home loan interest can be added to the new tax regime along with the old tax regime.
The benefit of tax exemption on principal account is available on investment of Rs 1.50 lakh under section 80C for buying a house by taking a home loan. Taxpayers want that a separate provision for annual deduction of up to Rs 1.50 lakh should be made on the principal account. Union Budget 2022: From Infrastructure Expansion to More Trains to Boost Tourism, Here’s A List of Expectations From The Railway Budget
From petrol, diesel to cooking oil and many other items of food and drink have become expensive. Buying a car and a house is also expensive, the school fees for the children are expensive. In such a situation, the taxpayers of the country want that the existing limit of income tax exemption should be increased from Rs 2.50 lakh. Due to this, they are expected to get some relief in the midst of rising inflation.
Subrajit Mukhopadhyay, Executive Director, Edelweiss Tokio Life Insurance said that we hope that the budget will consider creating a separate section for deduction of tax on payment of LIC premium. Vignesh Shahane, managing director and chief executive officer of Aegis Federal Life Insurance, said that Section 80C currently covers several investment options including Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS) and National Savings Certificate. In such a situation, a separate section for term policy would be good.
In Budget 2022, preparations are being made to give a boost to the real estate and construction sector, which is facing recession due to Corona epidemic. The scope of additional tax exemption available on home loan can be increased. With this, the government can take steps to bring demand in the real estate sector. Sources say that in the Budget 2022, under Affordable Housing, the first time home buyers can get an additional interest exemption of up to Rs 1.5 lakh for one year. Let us tell you, under section 80EEA, there is an additional exemption on payment of interest on home loan of Rs 1.5 lakh on a house up to Rs 45 lakh.
The Institute of Chartered Accountants of India (ICAI) has demanded that taxpayers should also give relief in standard deduction. There is a need to increase its limit. Currently, the standard deduction limit under income tax is Rs 50,000. It should be increased to Rs 1 lakh. Standard deduction is being sought for expenses incurred on office work and is in addition to professional tax.
Tax services and financial services company Deloitte India has demanded that employees should be given work from home allowance. If the government cannot give the allowance directly, then a provision for tax exemption should be made. Deloitte mentioned the work from home culture in Britain. He said that the government has made special rules to give tax relief to the employees in Britain. Deloitte India recommends that employees working from their homes should be given work from home deduction of up to Rs 50,000. Economic Survey 2021-22: India's GDP Projected to Grow at 9.2% in Current Financial Year
Due to the corona epidemic, a new trend was seen in the industry, corporate even in the media, work from home. Work from home started happening in government and private sector. In such a situation, the employed person has to set up the office in his own home. There is an expenditure on this. But, there is no discount. People are expecting from the Finance Minister that in this budget, keeping in mind the work from home culture, some special exemption should be given. There is a possibility that such an arrangement will be made which will benefit both the employee and the employer. Standard deduction can be increased keeping in mind the work from home.
If sources are to be believed, the officials of the Finance Ministry have conducted a survey looking at the data of tax returns. In this, an attempt was made to know why people are not adopting the new tax regime. In such a situation, it is being indicated that this time components like standard deduction for individual taxpayers and exemption on home loan interest rebate can be added in the new tax slab.
(The above story first appeared on LatestLY on Jan 31, 2022 11:33 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).