Changes in income tax slabs, changes in income tax rates, a higher standard deduction, a higher basic exemption limit, a higher section 80C limit, and tax incentives for working from home were among the many things the ordinary man hoped for in Budget 2022.
All of these items were absent from the finance minister’s Budget 2022 speech, disappointing individual taxpayers.
Many people were dissatisfied with this budget because it had nothing to help the typical person who is in debt, paying a high premium, and concerned about their children’s education.
This is a list of expectations that the current budget did not meet.
Increase in the 80C limit: The cost of living has risen dramatically, exacerbated by the pandemic’s negative impacts. As a result, it was requested that the current Rs 1.5 lakh cap be reassessed, with a minimum rise to Rs 2.5 lakh in Budget 2022.
Increase the Section 80D tax exemption maximum for health insurance: The current tax incentives do not incentivize consumers to purchase adequate health coverage. As a result, it was envisaged that this budget would be increased, ideally doubled. As a result, more people will be encouraged to buy health insurance and ensure that they get the right level of coverage.
Demand-side initiatives such as tax cuts and incentives for purchasers would only improve the real estate sector’s fundamentals. As a result, a time-limited GST exemption for under-construction properties was planned, giving potential purchasers more alternatives while keeping taxation on the level with completed structures.
Employees who work from home can save money on taxes: The present standard deduction should not be understood as a limit on how much can be deducted from a work allowance. According to tax experts, there is a compelling case for either creating a new deduction for home office expenses or extending the standard deduction limit for those who work from home.
Increased standard deduction and tax relief for saving for children’s education: The amount of the standard deduction is rather low, given the continued cost of inflation over time and current living expenditures of salaried workers. As a result, in Budget 2022, this sum was expected to be increased.
Extend the LTA cash voucher system due to the ongoing COVID-19 outbreak: Many people were unable to travel due to travel restrictions imposed as a result of the Covid-19 outbreak.
As a result, taxpayers will be unable to claim an income tax exemption in this regard in the Financial Year (FY) 2020-21. As a result, it was assumed that the deadline would be extended.
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