The salaried class is keenly awaiting this year's budget announcement. After being left disappointed last year, with not too much being announced by way of tax relief, the salaried class has high hopes from the Finance Minister, this year.
Income Tax Slab Revision: Personal income tax slabs and rates have not been changed since 2017-18. Experts are of the view that income tax slabs should be revised to give tax payers more purchasing power.
Basic Exemption Limit: Expectations are that the basic exemption limit be raised to Rs 5 lakh from the prevailing Rs 2.5 lakh.
Increase the limit under section 80 C: A long standing demand has been to increase the 80 C limit from the current 1.5 lakhs (since 2014-15) to 2.5 lakhs. There are a whole slew of long-term savings options such as PPF, ELSS, NSC, NPS, Bank FDs etc. And an increase in this limit would encourage taxpayers to increase investments while saving taxes.
Increase the limit under section 80 D: Experts say the limit under section 80D for claiming health insurance should be increased from Rs 25,000 to Rs 50,000 and for the elderly from Rs 50,000 to 75,000.
Home office expenses: With work from home continuing for a lot of companies, experts say that home office expenses should be allowed as a deduction.