Discount for remote working setup
In the midst of the corona virus epidemic, the professional class has seen major changes. Methods of working have changed. Companies started work from home and now it has become a rule in a way. In such a situation, the public is hopeful that in the budget 2021, the government should make some such provisions that will give some tax exemption to the employees. For example, an additional standard exemption of 50 thousand rupees in the total income should be given to those employees who are doing work from home on spending on chair / furniture, computer equipment and data etc.
Extending the scope of income tax exemption under 80C and 80DIncreasing the scope of exemption under 80C and 80D in Budget 2021 will help in increasing expenditure and investment. Experts consider it important for the economy. Under Section D, the scope of medical coverage for non-senior citizens can be increased from 25 thousand to 50 thousand, while for senior citizens, it can be increased from 50 thousand to 75 thousand, in case of health crisis like corona virus epidemic to taxpayers. Will help
Increased consumer spending power
Experts say that the central government has demanded tax reform while giving tax relief to taxpayers, so that the spending power of consumers is increased. Experts say that a better tax system should be announced in the budget, which should be easy and simple. Simultaneously, tax holiday should be provided with tax relief for start-ups and enterprises like MSMEs, so as to help in hiring new talent and retain talent. This will help in employment prospects.
Along with this, experts are also seeking to increase the exemption in long-term capital gains on long-term equity share investment. There is a discount of Rs 1 lakh in capital gains on equity shares and equity mutual funds. But, if the capital gain is above one lakh, tax is charged at the rate of 10 percent (surcharge and cess also) and the benefit of this indexation is also not available. Expert says that the government should increase the exemption limit in capital gains from 1 lakh to 2 lakh for retail investors. With this, if the tax rate is reduced by 5 percent, then the capital market will get a tremendous boost.
Debt linked savings plans launched
Industry experts believe that the introduction of DLSS (debt linked savings scheme) will help retail investors to incorporate long-term savings into higher-debt debt instruments with reasonable tax benefits, helping to further expand the Indian bond market. Will be found. With this, investors will be able to invest their money in a lock-in product of 5 years against PPF of 15 years and NPS (till retirement).
Pension Scheme for Senior Citizens
A large population of senior citizens in the country is denied the benefit of pension scheme. Industry experts say that a tax-friendly universal pension program can be started for senior citizens. The government has a golden opportunity to provide financial freedom to a large section of the population.
The countrymen hope that if the government incorporates these suggestions in the provisions of the budget, then they will get a big help and the picture of the economy will be more bright in the coming year.