Vijay C Roy
Chandigarh, January 28
For individuals, expectations of the budget are always high, as they are dedicated taxpayers and an important force in nation building. As the pandemic has put pressure on their incomes, individual taxpayers expect some relief on the personal income tax front. Their wish list includes:
Reduction of the tax burden
Individuals say the government should reduce the tax burden. This can be done either by increasing tax brackets or by reducing tax rates.
Home loan deduction
The interest part of the EMI home loan paid for the year can be claimed as a deduction from the total income up to a maximum of Rs 2 lakh under Section 24. In addition to this, the principal part of the EMI is permitted as a deduction under Section 80C. Raising the current cap from Rs 2 lakh to 5 lakh will bring huge relief to the salaried taxpayer and boost the real estate sector.
Exemption for home offices
Individual taxpayers expect an exemption from benefits provided by the employer to the employee for establishing a home office. An overall limit can be set as the standard deduction or the standard deduction limit of Rs 50,000 can be suitably increased to cater for such expenses.
GST on health insurance
Access to health insurance can help more people get quality medical treatment. Taxpayers believe that the government should consider applying the 5% GST (currently 18%) on health insurance premiums.
Refund under Section 80D
Increasing reimbursement under Section 80D can help boost overall health insurance penetration. Currently, an individual can claim a discount of up to Rs 25,000 for himself and his family. This limit should be significantly increased.
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