Budget 2022 is coming. Unfortunately, due to the recent surge in COVID cases in the country, taxpayers are increasingly expecting relief and deductions that should be offered to individuals. Some key expectations are mentioned below.
lower income tax rate
Currently, the top tax rate for individuals is 30%. Additionally, individuals can be taxed as high as 42.744% due to surcharge and education taxes, while the applicable rate for domestic corporations is only 25% (plus applicable surcharge and education taxes).
In light of the above, taxpayers are pleased to see the tax rate dropped from 30% to 25% for individuals earning more than Rs 10,000,000 (under the existing system) and individuals earning more than Rs 15,00,000 (under the new system). regime).
The rapidly increasing cost of living has led to increased expenses for children’s tuition, medical expenses, rent, etc. The following revisions will increase the disposable income of middle-income households and will also encourage them to invest:
- Increase the deduction limit under Section 80C of the Act to Rs 250,000 (from Rs 150,000).
- Increase the home loan deduction limit for owner-occupied properties from Rs 200,000 to Rs 250,000.
Complete News Source : Money Control
