Deduction can be allowed in the new tax regime
If sources are to be believed, the officials of the Finance Ministry have conducted a survey looking at the data of tax returns. In this, an attempt was made to know why people are not adopting the new tax regime. In such a situation, it is being indicated that this time components like standard deduction for individual taxpayers and exemption on home loan interest rebate can be added in the new tax slab.
Standard deduction limit may increase to 1 lakh
The Institute of Chartered Accountants of India (ICAI) has demanded that taxpayers should also give relief in standard deduction. There is a need to increase its limit. Currently, the standard deduction limit under income tax is Rs 50,000. It should be increased to Rs 1 lakh. Standard deduction is being sought for expenses incurred on office work and is in addition to professional tax.
Income tax basic exemption limit may increase
From petrol, diesel to cooking oil and many other items of food and drink have become expensive. Buying a car and a house is also expensive, the school fees for the children are expensive. In such a situation, the taxpayers of the country want that the existing limit of income tax exemption should be increased from Rs 2.50 lakh. Due to this, they are expected to get some relief in the midst of rising inflation.
Separate tax exemption can be available on the principal of the home loan
The benefit of tax exemption on home loan principal amount is available on investment of Rs 1.50 lakh under section 80C for buying a house by taking a home loan. Taxpayers want that a separate provision for annual deduction of up to Rs 1.50 lakh should be made on the principal amount.