The Union Budget will be presented on Tuesday, February 1, 2022, by Finance Minister Nirmala Sitharaman. Amid the ongoing surge in the Covid-19 situation, the people of India are looking forward to the Budget presentation.
- Provide enhanced deduction under section 80D for Mediclaim expenditure to cover COVID-19 treatment
The covid impact severely affects our lives even today and has increased the medical expenditure on individuals’ pockets for the last two years. Covid related expenditures like masks, vaccines, rapid tests, RT – PCR tests, medication, general advisory, quarantine loss, hospitalisation incur an individual’s additional burden. Hence, to boost people’s morale during this crucial time, we recommend an enhanced deduction under section 80D of Rs 1,00,000 for Medical expenditure & Medical Insurance-related expenses and creating a separate category to claim this under the income tax regime.
- Increase in limit of Standard Deduction
As a tax practitioner, it is expected from the upcoming budget 2022 that there should be an increase in the standard deduction limit from 50,000 to 1,00,000 for a salaried class as they face many challenges compared to business class (who can claim their expenditure against revenue). Also, in this current work from home scenario, employees incur higher work-related personal expenditure (like higher electricity, air conditioning, furniture, food). Therefore, keeping in mind the rate of inflation and purchasing power of the salaried individual, the Government should allow them to claim this expenditure at an appropriate level compared to the business class.
- Tax Clarity on Cryptocurrency
The introduction of a special regulatory and taxation regime for cryptocurrencies can be expected from this upcoming budget of 2022. It is the need of the hour. The Government should clarify legal status, reporting formats, disclosure requirements, & tax treatment in law as it attracts light speedy attention in the market.
Ankit Sehra & Associates is a modern-age Tax consulting firm offering legal & taxation services to startups and well-known businesses based in Delhi. Ankit Sehra is the Founder of Ankit Sehra& Associates, who has post graduated from Delhi University in Finance & Banking & he is an Advocate by profession & specializes in handling Income Tax & GST matters. He has over 12+ Years of experience in Corporate & Start-up consulting.