Budget wish list Individuals: Increase tax slabs, rebate on home loan

Vijay C Roy

Chandigarh, January 28

For individuals, expectations from the Budget are always high as they are dedicated taxpayers and an important force in nation building. As the pandemic has put pressure on their earnings, the individual taxpayers expect some relief on the personal income tax front. Their wish list includes:

Reduction in tax burden

Individuals say the government should reduce the tax burden. It can be done either by increasing the tax slabs or by reducing the tax rates.

Deduction on home loan

The interest portion of the home loan EMI paid for the year can be claimed as a deduction from total income up to a maximum of Rs 2 lakh under Section 24. In addition to this, the principal portion of the EMI is allowed as a deduction under Section 80C. Increasing it from the current cap of Rs 2 lakh to 5 lakh will provide huge relief to the salaried taxpayer and boost the realty sector.

Exemption for home offices

Individual taxpayers expect exemption on benefits provided by the employer to the employee for setting up home offices. An overall limit may be set akin to the standard deduction or the standard deduction limit of Rs 50,000 may be suitably increased to take care of these expenses.

GST on health insurance

Access to health insurance can help more people get quality medical treatment. Taxpayers feel the government should look at considering 5% GST (currently 18%) on health insurance premium.

Rebate under Section 80D

Hike in rebate under Section 80D can help boost the overall health insurance penetration. Currently, an individual can claim rebate of up to Rs 25,000 for self and family. This limit should be increased substantially.