The pandemic has had a significant impact on the country’s economy, particularly among the salaried class. During this phase of the pandemic, many salaried workers were forced to take salary reductions, and a large number of people were fired out. The working class is hoping that this year’s budget would bring them benefits.
The government might help the salaried class and provide options for improving their personal finances with this year’s budget. The present tax exemption for a salary of 2.5 lakhs per annum, should be increased to 5 lakhs per annum. Because of the lack of clarity, the salaried class is also confused about the old and new tax regimes. Simplifying or combining the advantages of both regimes to make it easier for the average person to understand.
In addition, benefits under section 80C are low due to inflation over the last 15 years. Reducing the limit to 5 lakhs in order to keep the saving habit. Another factor to consider is home loan interest rates, which should be reduced to a minimum of 5 lakhs in order to promote demand in the slow real estate market. To make insurance more inexpensive and accessible, the application of GST should be lowered to the minimum level. Because the cost of obtaining adequate health insurance coverage has increased, the exemption under section 80D should be doubled.