The Union Budget 2022 will be offered in Parliament as scheduled on 1st February 2022, by Finance Minister Nirmala Sitharaman. A scramble in normal deduction limit is the taxpayer’s main mandate from the finance minister. Taxpayers are expecting some relief in income tax.
Women businesspersons in several sectors of the country have excessive hopes from the Centre in terms of credit support and Covid incentive for women-led businesses. Here we convey to you the wish list and you can say some of the key Union Budget 2022 Highlights of the common man from Finance Minister Nirmala Sitharaman.
Key Union Budget 2022 Highlights
As Union Budget is going to declare soon here, we are going to provide some of the expected key Union Budget 2022 Highlights. Read the post till the end to know more details regarding the India union budget 2022.
Increase in Standard deduction
The standard deduction is a presumption permissible from gross salary income for salaried persons and pensioners. This deduction decreases the taxable salary pay of the individual and thereby reduces his/her tax accountability. The rise in the standard deduction for salaried employees was reinstated in FY 2018-19 after being scrapped in FY 2005-06.
The salaried class and pensioners could entitlement certain expenditures spent on transport and medicines. The standard deduction was made known in place of transport allowance and medical repayment which were reserved. The standard deduction from the current Rs 50,000 to Rs 1,00,000 is on top of the wish list of the common man.
Work from Home deduction
The India union budget 2022 may announce tax-free work from home stipends for salaried employees. Permitting presumptions for such expenditures will increase the take-home salary of the employees. The take-home salary increase will eventually generate demand for goods and services in India.
Female entrepreneurs in the micro, small and medium enterprise (MSME) or small business section are expectant some sops. Some female entrepreneurs want necessities for them from the Centre with extra tax benefits, subsidies, and interest-free loans.
Income tax exemption limit
A new personal income tax rule was announced in Budget Session 2020 giving the choice to taxpayers to choose any tax regime.
Since the tax exemption limit under both is Rs 2,50,000, the common man anticipates that this will be increased to Rs 5,00,000.
The government may take it into consideration on growing the highest tax slab to Rs 20 lakh from Rs 15 lakh or permit certain deductions to make it attractive. Union Budget 2021 did not provide any remarkable relief to the salaried class. Taxpayers want that in case of overdue payment of advance tax, strict interest is also relinquished or at least abridged by half to 6%.
Taxability of cryptocurrencies
The cryptocurrency had an extraordinary year with Bitcoin crossing USD 65,000 in November 2021.
The government has made it clear that it will not ban cryptocurrencies and would identify them as assets but not as a currency.
The common man confides that the government dissipates the air on the taxability of cryptos. Much-needed precision is anticipated on its taxation in Union Budget 2022 as the government waits for the Cryptocurrency Bill.
Worries also comprise its sorting, applicable tax rates, TDS/TCS, and GST consequences on the sale and purchase.
In current years, the government has decided to tax both the contribution to the provident fund and the interest accumulating from it. The new rule on PF influence and interest ensued effect poorly since the retirement corpus is taxed.
Though nothing is clear till now as the finance minister will declare everything after few times in Parliament. But you will definitely get a detailed updates regarding the Union Budget 2022 from our website.