There are expectations related to Income Tax Slab, rates change in Budget 2022.
Recently, during a pre-budget survey organised by KPMG, almost all the participants stated that they look forward to the emergence in the basic income tax expectation limit of 2.5 lakh.
We spoke to Amit Gupta, Founder & MD, SAG Infotech to decode the findings of the survey and what should one expect from upcoming Budget 2022:
When it comes to the individual tax front, there would be more poll participants expecting an emergence in the basic income tax anticipation limit of INR 2.5 Lakh.
Whereas the interviewee also backed the upgraded revision in most income slabs of INR 10 lakhs and more than that, and emergence in the existing section 80C abstraction limit of 1.5 lakh, ‘the survey report stated.
The basic anticipation limits were lastly revised during 2017- 18. So, this time it is obviously anticipated from the coming budget to enhance the basic expected limit so that it can assist the taxpayers who are middle-class to decrease their liability to some extent.
Here, are the mentioned responses which have been asked during surveys about the most expected change for individual taxpayers.
● There have been 36% of respondents who wish for emergence in Section 80C deduction limit of Rs 1.5 lakh.
● There have been 16% anticipated tax-free allowances/benefits for salaried people keeping in mind work from the home exhibition.
● There are 29% of respondents who wanted the government to increase the income limit of Rs 10 lakh where the most marginal rate of 30% tax is pushed.
● There have been 19 % respondents exempting an emergence in standard deduction limit of Rs, 50,000 for the class of salaried.
Emergence in Sections 80 C & 80 D limits
The government needs to enable a specific deduction under 80C on the principal reimbursement of home loans. Under section 80C the limit has not been enhanced for a long time span and so a lot of items are already enfolded under the limit of Rs. 1,50,000 already.
herefore, there is a huge exemption that will get increased by this year
‘Moreover, considering the price emergence in real estate from the past years, the government should enable the personal deduction for the principal reimbursement of home loans like it should not merge in the limit of section 80C.
Section 80C and Section 80D curbs are specifically exempted to be enhanced this year as they have been similar for so long.
Also, there will be high direct tax collection in this financial year which may aid to an upward revision of these limitations.
A soaring deduction that falls under section 80C allowed for the Equity Linked Savings Scheme ( ELSS), or else a discrete limit can be explained to motivate more mutual fund investments in India.
There are many experts who think that two tax rules can create confusion between the common man. The government should enhance the highest tax slab to Rs. 20 lakh from Rs.12 lakh or either enables specific deductions in order to make the new rule a way more alluring.
He also said that Budget 2021 doesn’t offer any massive relief to the class of salaried.
Standard Deduction limit change
To alleviate the tax load of the employees and to remember the rate of inflation and buying power of the certain salaried, exempted from this budget to enhance the limit of the standard deduction from Rs. 50,000 to Rs. 1, 00,000.
Budget 2022 might represent tax-free work from the home allotment for employees who are salaried. Permitting deduction for that kind of charge will emerge from the take-salary home, eventually making a demand for goods and services in the nation.
‘Because of the high direct tax collection in this financial year, there might be a way to enhance the tax deductions boundations.
For example – the standard deduction accessible to those with salary income may have emerged, apparently at Rs. 50,000. Although, this may be regulated for inflation each year.
No tax rate swap exempted?
Ahead of all the massive assumptions from the Budget 2022, experts at EY are expecting that personal and corporate tax rates are possibly not changing.
While the standard customs duty rate might be constant. There would have been some movement in the duty rates to induce value inclusion in India and rectify the inverted duty procedure.
