People Feel Income Tax Exemption Limit Could Be Raised in Budget: KPMG Survey

KPMG has conducted a pre-budget survey this month regarding basic increasing income tax exemption in the Union Budget 2022-23, which will be held on 1st February, 2022.

Around 200 finance professionals participated in the survey. Out of which 64 percent of respondent feet that in the upcoming budget current basic exemption limit of Rs 2.5 lakh will be increased. While, as many as 36 per cent o felt that the 80-C deduction limit of Rs 1.5 lakh will be increased, and 19 per cent felt that the standard deduction could be increased for salaried class from the current Rs 50,000.

Further, sixteen per cent of the respondents felt the Budget could provide for tax-free allowances/ perquisites for salaried individuals keeping in mind the work from the home arrangement – provision of internet connection, furniture and earphones.

“A majority of respondents believe there is a need to reduce the rate applicable to Indian branches in line with the 2019 rate cuts, in order for India to remain a globally competitive investment jurisdiction,” the survey added.

According to an earlier report, the government is thinking 30-35% increase in the limit of standard deduction available to salaried taxpayers and pensioner in Budget 2022, as per the officials.


Knowledge Source :

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