The Union Budget 2022 is closing near day by day as the budget will be presented on February 1, 2022, by the FM, Nirmala Sitharaman. The mango people have many more expectations from this budget. Therefore, we come with seven common expectations from the mango man.
Interest Deduction on Self-occupied House
Presently the Section 24B provides for a cap of Rs. 200000 lacs for a self-occupied house. Moreover, the reduction will be restricted to Rs. 30000 when the house takes beyond five years to gets completed. The calculation will be started from the end of the year in, which the loan was taken. When the buyer acquires the ownership of the house, then only the deduction is countable from that year. There were cases when the housing projects took more than three years and have gone for significant delays in completion.
For such cases, authorities will probably allow the deduction in interest without the restriction of Rs. 30000, according to the agreement terms.
Rationalize HRA Exemption
HRA Exemption is calculated over three criteria, firstly, it incorporates 10% of the least basic salary, actual rent paid. Secondly, if you are staying in a metro city, it goes for 50% of the basic salary and thirdly, 40% for any other city.
The 50% rule should be extended to the cities like Pune, Gurgaon, Hyderabad and Bengaluru as these cities have boosted the rents in past 10 years. At present, Delhi, Mumbai, Chennai and Kolkata are counted as Metro cities.
Broaden the Foundation of Tax
The government indeed should take steps in widening the tax base. In our country of 135 Crore people, almost 1.46 Crores pay tax. Basically, there are two categories of taxpayers, one is a narrow base of taxpayers and the others are compliant taxpayers. Unfairness is on the part of the latter one as they pay the higher rate of income tax. An even distribution would help a lot to disperse the burden. And the best solution for doing this is to put the maximum number of people under the tax net.
Deduction/Exemption for Expenses Incurred on Covid Treatment
There was always been tax exemption demand within the community and now the onset of covid has brought more attention to the earlier demand of the general public. Currently, there is no such rule to exemption by the income tax department and also in the ITC act 1961.
Demand in 80C Limit Increase
The union budget 2022 is expected to bring the increased limit that is minimum INR 2.5 lakh per annum in the section 80C deductions. The limit will not only help the general public also the government too.
Tax Exemption for the WFH Employees
The standard deductions currently should not be seen as the limit to deducted the deductions of the allowance within the work from home scenario. Now the demand has reached the limit that the standard deduction must be raised or there should be a new tax rule introduced to cover up the expenses within the WFH scenario. Also, a quick deduction would also do justification in the WFH expenses. And the least documentation will be a plus point for every employee.
Improve Agriculture Sector
The Indian Finance Minister, Nirmala Sitharaman will also focus on the agriculture department. She has also been debating about the farmers in previous budget consultations. The farmers are facing problems with bad monsoons. As per the reports, farming falling constantly for the last two years. As the government had promised to the farmers to improve the agriculture level, therefore, the public hopes regarding new schemes and surprise plan from the government.
