Significant Announcements May Happen by Upcoming Budget 2022

FM Nirmala Sitharaman would present her 4th Budget for India. In the ongoing pandemic, inflation is rising and the coming budget 2022 seems to disclose actions to mitigate the Covid-19 impact on the economy.

At this time FM Sitharaman was required to raise more resources via taxes and non-tax revenues. But experts and salaried class people pose 11 expectations from the upcoming budget 2022.

1. Acknowledging work from home salaried people seeks the deduction towards the home office expenses in computing the taxes in budget 2022.
2. Health insurance has posed a preference on people’s lists since arise of the pandemic. With 5% slab covered on the health insurance policy would make it more affordable sought by the insurance experts.
3. Sales which gets negatively affect the automobile sector are in the favor of EVs. the same is because they want EVs must be on people’s priority which leads towards encouraging more and more people to choose EVs at lower interest rates.
4. Also affected by the pandemic i.e hospitality sector is looking at a restored GST input tax credit. From subsequent lockdowns, the sectors want to secure their restaurants.
5. Bank and MSMEs are looking for the Emergency Credit Line Guarantee Scheme that describes a 100% credit guarantee via National Credit Guarantee Trustee Company on loans prolonged via bank and NBFCs.
6. The FMCG field wants Sitharaman to put the money in the hands of people, particularly in the rural areas.
7. The aviation industry is seeking tax breaks and suspension of minimum alternative tax for at least two years. Also, the pandemic that hit airlines indeed wants a suspension of the min alternative tax.
8. Startup definitions change within the corridors of the Industry body Indian Private Equity and Venture Capital Association.
9. Renewable sectors seek investment-based tax incentives. They see the incentivization of R&D, technology adoption, and investments in the storage segment.
10. The requirement to increase the existing standard deduction limit of Rs 50000 to at least Rs 75000 is indeed one of the expectations from budget 2022.
11. Experts see for the reintroduction of wealth and inheritance tax based on the covid inequality.