The Union Budget for Financial Year 2022-23 is all set to be presented in Parliament as scheduled today (February 1, 2022) by Union Finance Minister Nirmala Sitharaman. A hike in the standard deduction limit is the taxpayer’s main demand from the Finance Minister. Taxpayers are expecting some relief in income tax.
It is reported that women entrepreneurs in various sectors of the country have great expectations from the Centre in terms of credit support and COVID incentive for women-led businesses. With this, let’s take a look at the wish list of the common man from Finance Minister Nirmala Sitharaman in the Union Budget 2022.
a. Increase in Standard deduction
Standard deduction is a deduction allowed from gross salary income for salaried individuals and pensioners. This deduction reduces the taxable salary income of the individual and thereby reduces his/her tax liability.
The salaried class and pensioners could claim certain expenses spent on transport and medicines et cetera.
b. Work from Home deduction
The Budget 2022 may introduce tax-free work from home allowances for salaried employees. Allowing deductions for such expenses will raise the take home salary of the employees.
The take home salary raise will ultimately create demand for goods and services in the country.
c. Women Entrepreneurs
Female entrepreneurs in the micro, small and medium enterprise (MSME) or small business segment are expecting some sops. Some female entrepreneurs want provisions for them from the Centre with extra tax benefits, subsidies and interest-free loans.
d. Income tax exemption limit
The new personal income tax regime was introduced in Budget Session 2020 giving the option to taxpayers to choose any tax regime. Since the tax exemption limit under both is Rs 2,50,000, the common man hopes that this will be increased to Rs 5,00,000.
Government may consider increasing the highest tax slab to Rs 20 lakh from Rs 15 lakh or allow certain deductions to make it enticing. In 2021, the Union Budget did not provide any major relief to the salaried class.