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India’s salaried class is expecting from the Union Budget 2022-23 some announcements that will provide much-needed relief.
This year, income tax-payers have a long list of expectations from finance minister Nirmala Sitharaman as no relief was announced for the salaried class in the previous year’s budget.
According to a pre-Budget survey by KPMG, most individual taxpayers expect an enhancement in the basic income tax exemption limit of Rs 2.5 lakh. They also sought an upward revision in the top income slab of Rs 10 lakh and above and an increase in the existing section 80C deduction limit of Rs 1.5 lakh.
According to the survey, 36% of respondents want the government to enhance the 80C deduction limit of Rs 1.5 lakh while 29% expect the income tax limit of Rs 10 lakh at which the maximum marginal rate of 30% tax is triggerd to be enhanced. In all, 19% of respondents are hoping for an increase in the standard deduction limit of Rs 50,000 for the salaried classes.
Rajiv Dimri, National Head of Tax of KPMG India, said individual taxpayers are anticipating an enhancement limit of Rs 2.5 lakh. Respondents are also seeking an upward revision in the top income slab of Rs 10 lakh and an increase in the existing 80C deduction limit of Rs 1.5 lakh.
Over the past few years, the government has taken several measures to resolve tax disputes and overhaul the resolution framework. Further measures in this direction can help in reducing litigation. Rationalisation of TDS and TCS provisions to ease compliance burdens will also be welcomed, added Dimri.
The Confederation of Indian Industry (CII) urged the government to raise the salary cap of Rs 1 lakh per month to avail benefits under Section 80JJAA of the Income Tax Act.
On the other hand, 16% of these respondents are looking forward to tax-free allowances and perquisites for salaried individuals considering the work from home arrangement (provision of internet connection/furniture/earphones/etc).
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Raj Khosla, founder, and MD of fintech firm MyMoneyMantra.com, said many companies provide laptops, computers and furniture to employees to work from home. Some firms pay a fixed allowance to employees to bear the cost of remote working. The budget should clarify how these costs are to be accounted for by companies as well as provide some relief for such allowances to employees. Such payments should be exempt from tax in the hands of employees if supported by actual bills.
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Income tax-payers demand an enhanced tax limit because there has been a sharp rise in inflation and household expenses such as electricity and medical expenses.
Consumers and salaried employees are also expecting some tax-related benefits.
