We all know that Central Budget -2022 will announce on 1st February, 2022 by or Finance Minister Smt. Nirmala Sitaraman. During the year 2022-23, what should be the expected income and expenditure of the Government, will put before the Parliament for discussion. Till date deficit budget were published, and people expect the same for coming year.
Normally the budget of Central Government is announce last, before that Gram Panchayat, Municipal Corporation, State Government are announce. Formally Railway Budget was published separately before 3 days of Central Budget. Before budget, all the people expect relief in taxation, but we all know that government have to balance.
Expectations of Tax Payers are as under:
Page Contents
Change in Tax Slabs:
Since last 5 years, before last year, there were no change in tax slabs. Only last year they have given option to tax payer to select any one slab as per their choice, but the experience shows that most of the tax payers have chose old slab. The new slab should be made more attractive, so the tax payer may chose and take benefit of it. Moreover the basic exemption limit of tax also increase.
Rate of Tax on Firms and LLPs should reduced:
The rate of tax for Corporate entities are less than rate of tax of Firms and LLPs, which is not fair, hence it should be equal for companies and firms/LLPs.
Interest on House:
Looking to the present situation deduction of interest on loan taken for house is restricted to only Rs. 2,00,000 which limit is to be increase. It should be minimum Rs. 3,00,000 to 5,00,000.
Deduction of Chapter VI A:
Deduction under section 80C pertaining to Life Insurance Premium, Contribution to Provident Fund, Public Provident Fund, contribution to Unit linked Insurance plan, LIC mutual Fund, tuition fee of children, notified scheme of term deposit for a fix period of 5 years with schedule bank etc. But deduction of all these are only Rs. 1,50,000, which too small amount. Looking to the education fees this amount is too small. This amount of deduction is to be increase at least double, i.e. Rs.3,00,000
Rate of interest on refund:
Income tax Department should be fair enough in taking and giving interest on demand and refund. If an assessee has to pay arrears of tax, he has to pay the amount with interest at the rate of 12%, and at the same time, if assessee has paid more tax and is entitled for refund, he will get interest at the rate of 6%. Why there is discrimination? It should be equal, so they have to give interest at the rate of 12% on refund amount.
Relief to Salary tax payers:
Standard Deduction given on salary amount is of Rs. 50,000. It was NIL from 2006-07 to 2018-19 and was Rs. 40,000 for 2019-20 and 2020-21 it is Rs. 50,000. Looking to the salary standard of employees this deduction of Rs. 50,000 is to be enhanced to at least Rs. 1,00,000. At present the rate of inflation and purchasing power of the salaried individual Rs. 1,00,000 is also a small amount.
Limit of Tax Deducted at source to be increase:
Under the present Act, TDS has to be deducted if payments of individual transactions is Rs.30,000. Tax payers expected that owing to the inflationary trends the individual transactions limit should be increase to at lest Rs. 50,000 and aggregate transaction limit also to Rs.1,50,000
Advance Payment of Tax:
In the current year advance payment of tax is to be paid if Tax Payable increase to Rs. 10,000. This is effective from Asst. Yr. 2013-14. This limit of Rs. 10,000 is to be increased up to Rs. 50,000. This will save the time of department as well as assessee in making payment.
Income of Minor Child:
As per section 10(32) the income of the Minor child is clubbed in the income of the parents, whose income is higher. Deduction of only Rs. 1500 per child is allowable. It is expected that this limit of Rs. 1,500 is to increased to at least Rs. 15,000 for each minor child.
Author Bio
The medical expenses are mounting as one advances in age. One has to see the doctor, pay his fees, purchase medicines and wish to live peacefully. For Senior Citizens, instead of limiting the expenditure to specified deceases, general exemption needs to be given for medical expenses including purchase of medicines.
Will the motherly FM consider our plights?