Here Is What Income Tax Payers Want From Budget 2022

Budget 2022 Expectations: Experts want the government to make appropriate provisions for laptops, wifi, printer and other relevant expenses in the upcoming Budget. Also, people working from home should also provide income tax exemption to such individuals.

New Delhi: Budget 2022 comes at a very important time in Indian history. The world is struggling to recover from the economic destruction caused by the Covid-19 pandemic. Covid-19 has led to a loss of unemployment and salary cuts on a large scale. In India too, the trend has been similar.

But for salaried individuals, the Budget has always been an important announcement. The expectation to cut the income tax slabs and rationalise tax rates have always been an important point of discussion. But fiscal adjustments have a big impact on the fiscal deficit targets set by the government.

Let us look at what the income taxpayers in the country, expect from the upcoming budget.

More Accommodative Income Tax Slabs

According to a report by The Economic Times, there are 10 income tax slabs at present. These are 5.2 per cent, 10.4 per cent, 15.6 per cent, 20.8 per cent, 26 per cent, 31.2 per cent, 34.32 per cent, 35.88 per cent, 39 per cent and 42.744 per cent. These are the effective tax slabs, inclusive of surcharge and cess. For greater compliance, the report states, the government should simplify these tax slabs and make them in the multiples of 5.

Work From Home Allowance

Most of the people have been working from home ever since the inception of the Covid-19 pandemic. Remote work has become a new norm and according to a lot of companies, this will continue even after the pandemic gets over.

According to the report, the experts want the government to make appropriate provisions for laptops, wifi, printer and other relevant expenses in the upcoming Budget. Also, the government should also provide income tax exemption to such individuals.

Covid Bonds And Tax Deductions

The report also suggested that to raise the required funds, the government should consider selling ‘Covid Bonds’. These can be issued at a reasonable interest rate and for a tenure of 3 to 5 years. The report further stated that the bonds should also be eligible for an income tax deduction.

Clarity On Cryptocurrency Rules

The experts also said that it is high time the government provided clarity on the rules and regulations related to Cryptocurrency. As per the report, the crypto market has more than 20 million investors in India and they have invested over $10 billion in different digital tokens. The government needs to provide clarity on the taxation policy of these assets in the upcoming budget.

Raising Income Tax Exemption Limit

Currently, individuals with an income of Rs 2.5 lakh or less, per annum, are not charged any income tax. The report suggested the government raise this limit to Rs 3 lakh. This must be done to tackle the inflation and also, a lot of time has elapsed since the last revision was made.