Finance Minister Nirmala Sitharaman has these expectations in the upcoming budget-
1. At present, under Income Tax Act 80CCE, under Section 80C, 80CCC and 80CCD (1), a total income of Rs 1.50 lakh in a year is exempt from income tax. People are expecting the Finance Minister to increase it to Rs 2.5 lakh.
2. From this budget, people are hoping that capital gains will be exempt from provision under Sovereign Gold Bond Scheme (SGBs) and there will be no reference for a particular year.3. On the closure of the National Pension System (NPS) account, only 60 percent of the withdrawal amount gets tax exemption. The NPS Subscriber is required to purchase an annuity from the balance amount. When a person gets an annuity, it becomes taxable. People demand that on withdrawal from NPS, the entire amount should be tax free.
4. Tax deduction in another country should be considered as income of taxpayer. Under section 198 of the Income Tax Act, if there is a tax deduction abroad, it should be considered as the gross income of the assessee. Special provision for this is expected in this budget.
5. Several amendments are needed to eliminate the dividend distribution tax (DDT). Under section 243, if a taxpayer has to pay advance tax and if he misses it, or if the amount of tax is less than what should be paid, then the taxpayer has to pay interest on it.
6. Multinational companies are also expected to get relief in corporate tax from this budget. Companies say that due to Corona virus epidemic, the Finance Ministry should bring reform in corporate tax.
7. Apart from this, the number of public sector banks is also expected to be reduced from the budget of 2021-22. There may also be an announcement to merge public sector banks in the budget.
8. The vehicle scrappage policy can be announced in the budget to be presented on February 1, its purpose is to boost demand for automobiles by phasing out old, polluting vehicles in a phased manner.
9. In this budget, the government can focus exclusively on increasing private investment in railways. Apart from this, the government can also announce passenger safety.
10. The business class of the country is hoping to cut the GST in the general budget and get a loan at a lower interest rate to revive the business.