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minister. All eyes are set on the finance minister to know how government balances out the fiscal math and the populist measures to boost consumption.
Will FM present a Populist Budget this year?
“The salaried middle class especially the ones working with MSMEs would not have had increments as in a normal year and the same is expected for the upcoming financial year as well. This coupled with the inflation is expected to cramp their spending ability,” said Sundara Rajan TK, partner at DVS Advisors LLP. In the view of this, there is an expectation that the finance minister will provide some populist measure to put money in the individual’s pocket.
The middle class taxpayers also expect an increase in Section 80C deduction under the Income Tax Act, special deduction for Covid-19 related medical expenses and reduced compliance burden such as non-filing of returns for all categories of individuals where TDS has been deducted.
High Networth Individuals (HNI) also expect FM to help them to spend more to revive the economy. The want Union Budget to reduce surcharge and bring some clarity on taxation of cryptocurrency, among others.
KPMG also suggested that Budget 2022 should realign the income slabs and tax rates for individuals under both the normal and concessional tax regimes.
“All securities (including derivatives) should be specifically excluded from the ambit of TDS /TCS provisions applicable to purchase/sale of goods.” it further added.
“We also expect the government to continue promoting the affordable rental housing schemes by announcing tax reliefs for rental housing projects, which will fast track the pace of investments in these schemes,” said Sandeep Runwal, president, NAREDCO Maharashtra and Managing Director, Runwal Group
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