Taxpayers expect a lot from FinMin in Union Budget 2022-23
Common man hopes to see a slew of sops in Union Budget 2022-23
On February 1, when the Union Finance Minister Nirmala Sitharaman rises in Parliament to present the Budget for Financial Year 2022-23, the taxpayers in the country will have a clutch of expectations. The Finance Minister also knows this well, and she is expected to bring in a slew of reforms that would be scrutinised thoroughly by the common man.
Among the many proposals, pushing up the limit in standard deduction limit could be one that is expected the most. There had been a clamour for this already, and the taxpayers are hopeful that the Finance Minister would consider doing this. A relief in income tax is, as usual, prime on the minds of the people that make up the majority of the population.
Taxpayers look for Budget sops
Deduction that is allowed from the gross salary income of salaried individuals and pensioners is what standard deduction means. When such a deduction is allowed, it cuts down on the taxable salary income of the individual and thus brings into effect the individual’s tax liability. It may be recalled here that after being scrapped in FY 2005-06, the increase in standard deduction for salaried employees was reintroduced in fiscal 2018-19.
This allows salaried individuals and also pensioners to claim certain expenses spent on transport, medicines and the like. For the year 2022-23, the taxpayers would hope to have a standard deduction from the current Rs 50,000 to Rs 1,00,000.
Meanwhile, in the current Work from Home era, made imperative by the pandemic, it is likely that the Finance Minister might usher in tax-free work from home allowances for salaried employees. This move, if it happens, would make possible deductions that will up the take home salary of such employees.
Will women entrepreneurs get what they want?
Another area that the common man would want Nirmala Sitharaman to consider would be incentives for the women entrepreneurs in the micro, small and medium enterprise (MSME) sector and also those involved in the small business segment. Female entrepreneurs had been calling for extra tax benefits, subsidies and interest-free loans, which would in turn help further their businesses. Besides this, businesses run by women would also expect credit support and Covid sops.
It needs to be noted that the Union Budget of 2021 had not provided any considerable relief to the salaried class. This time around, the taxpayers would hope to see an increase in the highest tax slab to Rs 20 lakh from Rs 15 lakh.