The budget session of Parliament, which will start from January 29 this year, will be keenly looked at by economists and the common folk alike. The COVID-19 pandemic has resulted in job losses, lower wages, and a loss of consumer confidence in the market. India’s common man will therefore be sitting wide-eyed for the budget speech this time, expecting a cheer after a very gloomy year.
India’s Finance Minister Nirmala Sitharaman is burdened with expectations and hope, and one can only wonder about the government’s vision she’ll share in her annual speech.
It is assumed that the government will have financial incentives for the healthcare workers who served the country in a time of crisis. According to a research report by the International Journal of Trade and Commerce, India’s economy suffered losses between US$ 387 million and US$ 29.9 billion. However, there are some key expectations by India’s middle class to arrest this trend.
Last year, the government took an initiative to simplify taxation for the common man. However, individuals had to forego deductions and exemptions to get this benefit. At a time when it is important to put money in people’s hands, it would be a good time for a rate cut. Income tax deductions for the middle class can help the people struggling with finances this fiscal year.
People who are already finding it difficult to pay back their loans and EMIs, deserve this tax break to restabilise their finances. The rate cuts may also come in the form of a reduction in bank loan rates.
Almost the entire country, especially in the service sector, has been working from home since last year. The middle class had to incur substantial expenditure to set up the communication and infrastructure requirements, Since, the schools have been operating online. Teachers and students had to necessarily get more infrastructure, resulting in incurring more costs.
A WFH Deduction will go a long way to mitigate these extra costs, and would also encourage people to continue with their job.
While the entire country tries to stand up on its feet after a tough year, a tax break and a few deductions may help those who had a rough year. Today when the country is full of optimism and hope, the government can help them to cheer up.