The Union Budget 2022-23 is expected to address job creation, demand generation, and other economic problems. Ahead of the budget, there are a lot of expectations and growth benefits being suggested by experts. The Budget 2022 is likely to be presented on 1st February 2022. In this article, we will explore the predictions made by industry experts.
The Indian economy is recovering from the impact of COVID-19 and is gradually picking up even amid a volatile environment caused by high inflation, disruptions, and geopolitical tensions. Every year, taxpayers pin their hopes for a great financial year with the new Union Budget. Here are some of the Budget 2022 expectations.
The pandemic has drastically impacted the overall economy. So, this year the government's prime focus would be to develop a robust economic growth plan that will help revive the country's economy. Experts believe that the nation's growth could range between 7% and 7.5%. The government plans to use the extra revenue to build more assets that will be addressed in Budget 2022.
The budget 2021 did not introduce any tax rate changes. There were also no changes in the deductions of the pensioners and salaried individuals, but it exempted seniors from filing ITR. This year, Budget 2022 may address the tax deductions. Experts predict that there could be an increase in the deduction in Section 80D of the IT Act that covers the tax deductions on premiums paid towards a Mediclaim policy. There is also an expectation that government may provide taxation benefits on COVID-19 related medical expenditure incurred by those affected.
With regards to home loan interest payments, experts expect to see an increase in the tax deduction limit as applicable under Section 24b. To reduce the financial burden of taxes, the interest cap could be increased up to Rs.5 lakhs from the earlier Rs.2 lakhs per annum limit. If such changes are announced in Budget 2022, it will provide much-needed relief to homebuyers who have been struggling in the face of a substantial increase in the prices of essential commodities.
Budget 2022 – 23 - Impact on Different Industries & Sectors: - Healthcare, Infrastructure, Railway, MSME's