Money Excel - Personal Finance Blog

Menu
MENUMENU
MENUMENU
  • Home
  • Business Ideas
    • 225 Small Business Ideas
    • 40 Online Business Ideas
    • 20 Business Ideas for Beginners
    • 20 small manufacturing business
    • 30 Food Business Ideas
    • 100 Business Ideas low investment
  • Stock Market
    • Best Demat & Trading Accounts 2020
    • Best Stocks 2020 by Experts
    • Best Virtual Trading Apps
    • Best Stock Screener
    • Best Discount Brokers in India
    • Multibagger Stocks of LockDown
    • Rakesh Jhunjhunwala Portfolio
  • Mutual Funds
    • Best Mutual Funds 2020-21
    • Best Direct Mutual Fund Platform
    • Best Mutual Fund Mobile Apps
  • Incometax
    • Income Tax Slab FY 2020-21
    • Income Tax Calculator FY 2020-21
    • Income Tax Refund Request
    • Pay Advance Tax Online
    • Download New 15G -15 H Forms
  • Investment
    • Best Investment Ideas 2020
    • Long Term Investment Options
    • Best Investment Regular Income
    • Best Investment Options NRI
  • Credit Card
    • Best Credit Cards 2020-21
    • Best credit card for online shopping
    • Best Forex Card in India
    • Best Business Credit Cards
    • Credit Cards against Fixed Deposit
  • Insurance
    • Best Term Insurance Plans 2020
    • Best Health Insurance 2020
    • Best LIC Policy 2020
    • Best Car Insurance Companies
    • Best Mobile Insurance Companies
  • Downloads
Home
Personal Finance
Budget 2021-22 – Expectations of Common man

Budget 2021-22 – Expectations of Common man

Raviraj Parekh January 14, 2021

Union budget 2021-22 –  The budget 2021-22 would be an important event for the common man. Budget will be presented in the parliamentary session on 1st Feb, 2021.

This year Indian economy is going towards a recession phase due to COVID-19 crisis. Although tax collection is very low in the year 2020, common man is expecting major relief with respect to Income Tax and all other financial fronts. Additionally, common man also wants employment generation and more earning opportunities.

The government has collected suggestions of the common man online on MyGov Portal. The suggestion submitted by common man online the portal would be presented in the upcoming parliament session. This means opinion of common man would count in union budget 2021-22. I have complied suggestion by the common man in this post.

Budget 2021

Do not miss below posts -
  • Do light lamps of financial freedom this Diwali!
  • How to Transfer Sukanya Samriddhi Account?
  • Chillr – Easy Fund Transfer App by HDFC Bank

Budget 2021-22 – Expectations of Common man

Income Tax Related Expectations

As of now standard deduction limit is Rs.50000. Suggestion is made to increase this standard deduction limit from Rs.50000 to 1 Lakh.

Investment made up to 1.5 Lakh under section 80 C can be claimed for income tax deduction. The suggestion is given to increase this limit from 1.5 Lakh to 1.9 Lakh or 3 Lakh.

Under section 24 Home loan interest up to 2 Lakh is allowed for deduction. It is recommended to increase this limit by 1 Lakh. This means section 24 for home loan should give benefit of 3 Lakh.

Electrical Vehicle Loan Interest rate exemption should be increased to 3 Lakh. This limit can be applied to all four wheeler purchase using loan.

Leave encashment limit as of now is 3 lakhs it is expected by the salaried people that this limit should be enhanced to 5 lakhs.

For health care workers and doctors specialized tax benefit can be announced. For health insurance income tax exemption under section 80D is Rs.25000 that can be enhanced to Rs.50000 and for senior citizen this limit can be enhanced to Rs.75000.

The government should impose additional tax on super rich. This tax can be in form of Covid relief cess. One suggestion could be that person with income above 20 lakhs needs to pay 1% Covid relief cess.

Do not miss below posts -
  • Union Budget 2015-16 – Key Highlights
  • It’s all about inflation-indexed bonds (IIB)
  • When did you last check your locker? – Crime Patrol …

Insurance Related Expectations 

People have realized benefits of Health Insurance and life insurance in the year. The government is offering benefits of life insurance premium and health insurance premium under section 80C and 80D. But, to boost overall economy the government should extend additional benefits to crop insurance taken by farmer.

Cyber security is also popping up as new risk. To mitigate this new cyber risk, the government should provide some tax relaxations and incentives.

On the indirect tax front, the government can reduce GST rate applicable on insurance premium. This is to boost insurance sector.

Equity and mutual fund related Expectations

As of now on sell of shares (equity) long term capital gain tax and short term capital gain tax is applicable. Common man is expecting reduction or removal in the LTCG and STCG but it is expected that the government shall increase short term capital gain tax from 15% to 20%.

For the mutual funds common man is expecting that dividend income which is currently added to income and taxed as per income tax should be relooked into. The government should remove this clause.

Conclusion

At last I just want to say at time of election when politicians require vote they listen to every demand of people. But when time comes fulfilling it in budget, they simply refuse demand of common man by giving multiple excuse like fiscal deficit, economy etc.

Hope this year in Budget 2021 at least few demands mentioned above will be fulfilled by government.

If you are agreed on suggestion given above, just provide your agreement by sharing this post on facebook and Twitter.

Prev Article
Tags:Budget 2021 Budget 2021 expectations Budget 2021 Incometax

About The Author

Raviraj Parekh

Raviraj is the man behind moneyexcel.com. He is PGDBA, engaged in blogging for 10 years. Moneyexcel blog is ranked as one of the Top 10 Personal Finance Blog in India. He is not affiliated with any financial product, service provider, agent or broker. The purpose of this blog is to spread financial awareness and help people in achieving excellence for money. Please note that the views expressed on this Blog/Comments are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion.

Leave a Reply

Cancel reply

IIFL Demat Account

Search

Top Posts & Pages

  • Income Tax Calculator FY 2020-21 (AY 2021-22) – Excel Download
  • Rakesh Jhunjhunwala Portfolio Holdings - January 2021
  • How to check Property Records and Land Records online in India?
  • 20 small manufacturing business ideas with low cost
  • 225 Small Business Ideas with Low Investment in 2021-22
  • LIC Premium Paid Certificate Download For Income Tax Purpose - Online
  • Cash Deposit Machine Locator – How to find CDM Near You?
  • Top 60 Manufacturing Business Ideas
  • 10 ways to Convert Black Money to White
  • Income Tax Calculator FY 2019-20 (AY 2020-21) - Excel Download

Subscribe to Blog via Email

Join 5,472 other subscribers

Follow MoneyExcel

Money Excel – Personal Finance Blog

Personal Finance Blog
Copyright © 2021 Money Excel - Personal Finance Blog
| About |Downloads | Contact Us | Sitemap | Disclaimer | Privacy Policy |