With this year’s budget, the government could enable the salaried class and create opportunities for them to enhance their personal finances.
The country’s economy has been impacted by the pandemic and has hit the salaried class badly. In this phase of the pandemic, while a lot of the salaried workers had to take salary cuts, a significant number of employees also lost their jobs. The working economy is expecting benefits to be brought to them from this year’s budget.
With this year’s budget, the government could enable the salaried class and create opportunities for them to enhance their personal finances.
For instance, the current tax exemption that is applicable for the salary of 2.5 Lakhs per annum should be revised to 5 Lakh per annum. Due to a lack of clarity, there is also confusion amongst the salaried class regarding the old and new tax regimes. Simplifying or merging the benefits of both regimes to make it easier for the common man to learn about it.
In addition to these, with the inflation that has occurred in the last 15 years, benefits under section 80C are low. A revised the limit to 5 Lakhs, to keep the saving habit intact. Another important aspect to be considered is the home loan interests, which should be revised to a minimum of 5 lakhs to boost the demand of the sluggish real estate sector.
Coming to the insurance sector, one very important thing that the pandemic has shown and taught us is the importance of buying both life and health insurance products. The application of GST should be reduced on insurance to the minimum possible level to make it more affordable and accessible. The exemption under section 80D should also be doubled as the cost of buying a sufficient health insurance cover has also gone up.
by, Zafar Imam, CEO, FinShell
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