Finance Minister Nirmala Sitharaman will present her fourth budget on February 1 this year. Will the upcoming Union Budget 2022 bring any change in the existing income tax rates? Taxpayers expect some relaxation or relief from Finance Minister Nirmala Sitharaman. Let us tell you, last year the government had announced several stimulus packages to rejuvenate the economy affected by the coronavirus pandemic.
In the upcoming Union Budget, taxpayers are expecting some relaxation or relief from the Finance Minister, as the slabs have not been changed for a few years. Change in slabs will bring more liquidity in the hands of buyers. If the government reduces tax rates for both buyers and sellers, it will rejuvenate the market. This will increase the demand for housing and higher products. But, excess liquidity in the market can be a matter of concern for the RBI, as there is a possibility of rising inflation.
With the government’s strong focus on big bang reforms to strengthen the economy and boost entrepreneurship through “Make in India” and PLI schemes, this is a big plus point and expectations are high. We believe that this government should promote direct disposable income to boost spending and consumption.
It is expected that in the current situation, the Finance Minister can make important announcements in the budget with the aim of accelerating economic reforms, promoting entrepreneurship and giving relief to the taxpayers.
It is expected that, in this Budget 2022, the government can decide to what extent tax payers will get tax exemption or what changes will be made in the tax structure for the next financial year. Announcements can also be made in the budget regarding education and further strengthening of the country’s infrastructure. It will also be seen in this budget that the government increases or decreases excise duty, customs duty, import duty, cess on anything.