Union Budget 2022!
Budget 2022: Good news for salaried professionals in Union Budget 2022!
All sectors have a number of expectations in the 2022 budget, which includes individuals such as agriculture, health and real estate or entrepreneurs and salary professionals.
Finance Minister Nirmala Sitharaman will announce his fourth Union Budget on February 1, 2022. All sectors have a number of expectations in the 2022 budget, which includes individuals such as agriculture, health and real estate or entrepreneurs and salary professionals.
The tax-exemption limit for salaried professionals has remained the same for several years, and is expected to be increased in the upcoming budget (Budget 2022). Due to the forthcoming elections in five states, this announcement could affect the substantial voting impact of salaried professionals in India. So, here’s what’s new for salaried professionals in Budget 2022.
Tax deduction limit
2.5 lakh at present and the limit has not been revised for the last eight years. This limit has been raised from Rs 2 lakh to Rs 50,000. Taxpayers are now asking to increase this limit to Rs 5 lakh. However, more realistic expectations could see the limit increase to 3 lakhs.
Scope of immunity under 80C
Currently, the exemption of Rs 1.5 lakh is allowed in Section 80C (Section 80C). This has been increased from Rs 1 lakh in 2014 to the present limit. This section is crucial to the tax-saving strategy of salaried professionals. Budget analysts expect this limit to be increased to Rs 2 lakh in the upcoming budget.
Tax-free FD with a lock-in period of 3 years
The Indian Bank Association has demanded that the lock-in period of tax-free FDs be reduced from 5 years to 3 years. Banks have also reduced interest rates. Interest rates on PPF are better than current FDs, which results in lower investments in options and more on mutual funds and stocks. Making FDs attractive in the short term may be on the cards.