Budget 2022: Tax Burden On Pensioners May Reduce, Standard Deduction Limit Could Be Increased

Budget 2022-23: Finance Minister may increase the standard deduction (Standard Deduction) limit from the existing Rs 50,000 to Rs 75,000 to provide relief to salaried and pensioners in the Budget

At present, there is a provision of standard deduction of up to Rs 50,000 in the total income of the taxpayers. Image: Getty

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Budget 2022-23: The government may provide a major relief to salaried (Salaried Class) and pensioners who are suffering from rising inflation (Rising Inflation) in the General Budget (Union Budget) to be presented this year. In the Union Budget to be presented on February 1, 2022, Finance Minister Nirmala Sitharaman is expected to announce an increase in the standard deduction limit to relieve taxpayers from rising inflation and reduce the tax burden (Tax Liability). 

Rs 75,000 may be the limit of standard deduction-
Nirmala Sitharaman (Nirmala Sitharaman) may increase the standard deduction limit from the existing Rs 50,000 to Rs 75,000, or directly up to 50 per cent, by presenting the fourth Budget Standard Deduction (Fourth Budget) of the second term of the Modi government (Modi Government). Apart from business chambers (Business Chambers), many economists (Economists) had requested the finance minister to increase the limit of the standard deduction to reduce the tax burden on the taxpayers. 

Cost of salaries increased during corona period-
During the corona pandemic, salaried class (Salaried Class) has to work from home. Due to this, the electricity bill, internet expenses of the salaried employees have increased. Online education of children from home has also led to an increased expenditure of taxpayers. 

Troubled by inflation- 
Due to the pandemic, the expenditure on health services has also increased. Inflation is increasing. Prices of petrol, diesel, edible oil, and LPG, PNG, and CNG have also gone up drastically. Therefore, the finance minister may increase the limit of the standard deduction from the current limit as per the demand made by the people. In view of the increased expenditure on building offices at home in many countries during the corona period, taxpayers have been exempted from tax, which is also being sought to be implemented in the budget in India. 

Standard deduction came into effect in 2018- 
At present, there is a provision of standard deduction of up to Rs 50,000 in the total income of the taxpayers. In 2018, when the then Finance Minister Arun Jaitley (Former Finance Minister Arun Jaitley) introduced standard deduction in the Budget, the standard deduction limit was Rs 40,000, but the then Finance Minister Piyush Goyal (Piyush Goel) raised the limit to Rs 50,000, presenting the Interim Budget (Interim Budget) just before the Lok Sabha elections (Loksabha Elections).