• Notification Date: 25-01-2022
• Notification No: N/A

Changes in Income Tax Slabs and Rates are expected in the Budget 2022

The taxpayers are expecting a change in the Income Tax Slabs and Rates in the upcoming Budget 2022. The majority of the respondents replied in a recent survey by KPMG, that they expect an appreciation in the Income Tax Exemption limit of Rs.2.5 lakh.

Abhishek Soni, the Co-founder, and CEO of Tax2win, has asserted that Income tax exemption limits were last modified in 2017-18. It is very crucial to increase the income tax exemption limits at present to help middle-class people in decreasing their tax liability.

He stated that separate deductions on the repayment of the principal amount of home loans must be included under Section 80C. The section only has an exemption limit of Rs.1,50,000 which is very low.

The Founder and CEO of Clear, Archit Gupta, the exemption limits under Section 80C and Section 80D are required to be increased in this financial year. High direct tax collection is required to regulate the limits under these sections. He is also hopeful that Budget 2022 will include tax-free work-from-home allowances for the employees. By doing so, the take-home salary of the employees will increase. This will further result in the increasing demand for the Goods and Service Tax.