Budget 2022 Feb 1 Income Tax Refund To Top 5 PPF Budget Announcement Expectations Check Details Business News India

Budget 2022: Finance Minister Nirmala Sitharaman will present the general budget for the fourth consecutive time on February 1. After the economic survey, the expectations of ordinary people have increased regarding the budget. This time from the budget, from the increase in the annual limit of Section 80C of the Income Tax Act to the PPF deposit limit, taxpayers are also expected to get some relief on the income tax slab. Let us know from Pankaj Mathpal, MD & CEO, Optima Money Managers, about the top 5 relief taxpayers expect from Nirmala Sitharaman today.

1. Increase in the annual limit of article 80C- Taxpayers across the country await Nirmala Sitharaman’s Institute of Chartered Accountants of India (ICAI) suggestion to increase the annual limit under Section 80C to Rs 3 lakh from the current Rs 1.50 lakh. It was last increased from ₹1 lakh to ₹1.50 lakh in 2014 and both ICAI and taxpayers feel that the Narendra Modi government should increase this section 80C limit.

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2. Increase in the deposit limit of the Public Provident Fund or PPF- PPF investors expect there to be an increase in the maximum deposit limit set under the Public Provident Fund (PPF) scheme. Explain that now a person can invest up to Rs 1.5 lakh per year in the PPF account. This deposit amount is also eligible for tax deduction under section 80C of the Income Tax Law. Like the Section 80C limit, ICAI has suggested to the Narendra Modi government to increase the PPF annual deposit limit to ₹3.0 lakh from the existing ₹1.50 lakh.

3. Change in the income tax slab- Two years ago, in the Union Budget 2020, Nirmala Sitharaman introduced the double taxation regime, where she introduced a new tax regime that gives a standard deduction to taxpayers with an annual income of ₹2.50 lakh to ₹5 lakh. However, to make use of this new tax regime, the taxpayer had to lose all tax claim benefits such as Section 80C, Section 80CCD, mortgage loan interest reimbursement, mortgage loan principal reimbursement, fee children’s school, etc. This year, taxpayers expect the Narendra Modi government to introduce a single tax regime that will include income tax slabs from the current new tax regime along with tax benefits from the old regime.

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4. Support for capital investmentTaxpayers expect Union Finance Minister Nirmala Sitharaman to announce relief for equity-linked investments like ELSS, ULIP, etc. mutual funds. They expect a separate section to claim tax relief under section 80C as an option for salaried taxpayers. For Provident Fund (PF) or National Pension Plan (NPS); His annual exemption limit of ₹1.5 lakh is almost exhausted. Therefore, today Nirmala Sitharaman is also expected to announce a separate section for claiming tax benefits on equity-linked investments.

5. Increase in the tax exemption limit on interest on mortgage loans- Property developers have demanded Finance Minister Nirmala Sitharaman to increase the tax exemption limit on home loans from the existing Rs 2 lakh to Rs 5 lakh in the budget. Builders have also demanded the Finance Minister to increase the scope of Affordable Housing and reduce the Long Term Capital Gains Tax (LTCG Tax) on real estate. CREDAI submitted its list of demands in the budget to the Finance Minister, in which CREDAI Chairman Harshvardhan Patodia requested the Finance Minister to increase the interest tax exemption limit on homebuyer mortgage loans from Rs 2 lakhs. 5 lakh should be increased to Rs. Apart from this, there has been a demand for amendment in section 80C, in which the limit of 1.5 lakh has been demanded to be increased, so that the benefit of tax exemption can be given on the payment of more than 1.5 lakh of the principal of the home loan. .

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