New Delhi | Jagran Business Desk: Finance Minister Nirmala Sitharaman will present the union budget on February 1, 2022, and like every year, taxpayers have high expectations from this year’s budget too. The union budget is expected to hold several good news for the salaried class as the Centre is focusing on giving maximum relaxation to taxpayers ahead of the assembly elections, 2022. Here’s a list of what can be expected from the budget this year.
1 lakh standard deduction
Currently, the standard deduction under section 16 is fixed at Rs 50,000 for salaried classes. People have been demanding it to be increased to 1 lakh. The Working class is expecting a change in this regard in the upcoming union budget. If the standard deduction is increased, the salaried class will get direct tax benefits. This is because a major part of the total income tax revenue of the government comes from TDS of the salaried people.
Work From Home Allowance
Under the current work from home (WFH) setup induced by COVID pandemic, the expenditure of people on electricity, internet charges, rent, furniture etc. has increased. Many employers are giving allowances to the employees for carrying out office work from home. People are demanding such allowances should be exempted from income tax as it will give a big relief for the employed people. Something related to this is also expected in the union budget.
Insurance, Mediclaim and 80C exemption
Amid the Corona pandemic, the number and volume of Life Insurances have also increased. Therefore, taxpayers are now expecting an exemption in this matter. There is a demand to make insurance taken due to Corona tax-free for 5 -10 years. People are expecting the limit of 80C could be increased overall in the upcoming budget.
Exemption from GST on Insurance
Taxpayers are also expecting exemption in GST on insurance / mediclaim premium. According to sources in the Finance Ministry, as qouted by a Dainik Jagran report, this demand can be included in the budget.
Hindu Undivided Family to get benefit of section 87A
People are demanding that the rebate currently available under section 87A in the category of individual taxpayers should also be made available to Hindu Undivided Family (HUF).