The salaried class in the country is hoping that Finance Minister Nirmala Sitharaman’s Budget 2022 announcements on February 1 will bring much needed relief amid the ongoing Covid-19 pandemic.
Salaried class taxpayers are expecting that the upcoming Union Budget 2022-23 will provide a reduction in income tax rates and surcharges as inflation continues to climb.
WHAT TAXPAYERS WANT FROM BUDGET?
While taxpayers will be happy to have more money in hand, they won’t mind an increase in deduction available under section 80C of the Income Tax Act.
Apart from any announcement on an increase in home loan repayment exemption, and relief on dividend taxation will bring cheer for the salaried class.
An increase in the standard deduction limit will also bring much needed relief to salaried taxpayers. A proposal has been sent to the government by senior tax advisors, but it remains to be seen if the government will consider it.
TAX CUTS UNLIKELY
However, due to policy and fiscal compulsions, FM Nirmala Sitharaman may not announce any change in income tax rates in the upcoming budget, the Economic Times reported, quoting consulting major EY India.
The central government is also unlikely to announce any additional tax deductions under the new or old tax regime in the upcoming budget. Therefore, salaried individuals may need to wait for Union Budget 2023-24 for the rationalisation of tax rates, as per reports.
Meanwhile, FM Sitharaman has chaired a series of pre-budget consultation meetings for Budget 2022-23 with more than 120 invitees representing 7 stakeholder groups.