Budget 2022: Taxpayers have high expectations from this time’s budget. The scope of tax exemption has not increased in the last few years.
Many types of discounts can be found in the budget. Let us know what are the expectations of taxpayers from this budget.
Budget 2022: The budget session has started with the President’s address. Common people have high expectations from this time’s budget (Budget 2022 Expectations).
Actually, due to the crumbling economy and rising inflation due to Corona havoc, people are in the hope that the government can give them relief in this budget (Budget 2022 Live).
In this sequence, apart from giving a growth booster to the economy, there is a possibility of big relief for the taxpayers in the budget. Actually, for many years no such announcement has been made for the taxpayers, from which they have got a big benefit.
In such a situation, it is expected that this time the government can make them happy by giving the gift of tax exemption.
Government can give great news
The Indian Banks Association (IBA) has demanded from the government that fixed deposits of 3 years should be brought under the purview of Tax Exemption Limit.
If it is approved by the government, then it will definitely be a big relief. Let us know what steps the government can take to please the taxpayers.
Demand to make FD tax free
The Indian Banks Association (IBA) has demanded that the lock-in period of tax free fixed deposits should be reduced. At present, tax exemption is available on FD of 5 years.
But, there is a demand to reduce it to 3 years. According to the association, by bringing 3-year FD under tax exemption, taxpayers will get the option of other products as well.
At this time people are investing more in other products like PPF or Sukanya instead of FD due to low interest rates. At the same time, mutual funds are also a good option for investors with risk factors.
Expected to increase the scope of 80C
At present, tax exemption is available on investments up to Rs 1.5 lakh made under section 80C. In this, there are many products like PPF, Sukanya Samriddhi Yojana, Life Insurance.
Earlier in the year 2014, the scope of 80C was increased from Rs 1 lakh to Rs 1.5 lakh. That is, it has not changed in the last 8 years.
Especially for the salaried class, section 80C is the best option to save tax. If the government increases the exemption limit under this section, then more people will invest in it.
Basic Limit Can Also Be Increased
The basic tax exemption limit is currently Rs 2.5 lakh. Earlier in the year 2014, it was increased from 2 lakhs to 2.5 lakhs. But, there has been no change in this too in the last 8 years.
Therefore, it is expected that to give relief to the taxpayers, the basic income tax limit can be increased to Rs 3 lakh. Actually, this year elections are to be held in 5 states. In such a situation, by increasing the basic limit, taxpayers i.e. voters of a particular class can be made happy.
