New Delhi: With the Omicron variant raging across the country, the taxpayers are expecting some relief from the upcoming Budget 2022 to be presented by Finance Minister Nirmala Sitharaman on February 1 this year.
The government had announced multiple stimulus packages to boost the battered economy last year. In view of the extended pandemic situation, taxpayers are hoping for some rebate or relief from in this Budget.
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As a result of work from home situation, employees were not only forced to spend more to tackle Covid situation affecting them, but also incur additional expenses such as internet and telephone charges, furniture to set up home office, extra electricity bills etc.
Hence employees are anticipating some relief in the form of the standard deduction from the government. The Standard Deduction is a basically a flat deduction from salary income to allow for medical and transport expenses, mostly incurred by salaried individuals related to their employment.
Salaried employees are hoping for a work-from-home allowance in the upcoming Budget 2022 that will offer a tax relief on expenses incurred for carrying out office works from home during the pandemic.
“Considering the current situation, employees are working from home across businesses. Employees are likely to incur additional ‘work from home’ – related expenditure, such as internet charges, rent, electricity, furniture, etc., and therefore, employers would need to provide allowances to meet these expenditures,” Deloitte India mentioned in its Pre-Budget Expectations 2022 quoted in the Financial Express report.
Deloitte India recommended an additional deduction of ‘work from home’ allowance of Rs 50,000 to be given to employees who are working from home.
Some of the companies are hoping that the government can decide the extent to which taxpayers will get tax exemption or what changes will be made in the tax structure for the next financial year. “Announcements can be also made in the budget concerning education and further strengthening of the infrastructure of the country. This budget will also show whether the government increases or decreases excise duty, customs duty, import duty, cess on anything," said Amit Gupta, MD, SAG Infotech in a report in the Mint.
On the other hand, the Institute of Chartered Accountants of India (ICAI) suggested the government to provide tax relief on work from home expenses, as per the Mint report.
ICAI also asked for a standard deduction of Rs 100,000 for salaried employees for working from home-related expenses. “It is suggested that expenses incurred towards furniture/other set-up costs may be specifically exempted,” ICAI added.