personal finance

From Budget 2020, common man wants income tax cut and incentives to spend: Survey


The Indian economy is not in the best shape at the moment, which makes Nirmala Sitharaman’s second budget all the more crucial. She needs to announce measures to boost the economy and keep various sections of the society happy. The common man has been hoping for a cut in personal tax rates for quite some time now. An eager India awaits what could be a ‘Big Bang Budget’. Well, we will get to know on February 1, if the FM if will bite the bullet this time around.

What else does the average Indian want from the Union Budget 2020? A recent survey by Local Circles, a community social media platform, found that most people want the government to not just provide a tax cut but also announce measures that will provide an incentive to spend.

Currently for individuals under the age of 60 years, there is zero tax up to an annual income of Rs 2.5 lakh. Respondents were asked how the government should change this. The survey found that 69 per cent want the limit to be increased to Rs 5 lakh, 18 per cent want it to be hiked to Rs 3 lakh, and 7 per cent said it should not be changed. In fact, 2 per cent said it should be reduced to Rs 2 lakh.

tax-slab

In the Local Circles survey, over 44,000 unique participants took part and over 80,000 votes were received from people based in more than 250 districts of India.

Here are more findings from the survey.

Measures to increase consumer spending

Respondents wanted the government to announce various taxation-related measures so that people could spend more. About 13 per cent said a domestic tourism deduction of up to Rs 50,000 per year should be provided, 10 per cent said a deduction of up to Rs 25,000 per year should be provided on school or professional education, and 1 per cent said a deduction of Rs 50,000 should be given on purchase of an automobile. The Government should look for other ways, said 16 per cent.

consumpton

Restructuring LTA

Leave Travel Allowance (LTA) is an important component of salary packages as it allows employees to travel on a vacation and get a tax rebate for a certain amount by providing the necessary documentation. When asked how the government should restructure LTA benefits, 24 per cent said it should be made available each year instead of every two years, and 31 per cent said citizens should be permitted multiple trips within the prescribed LTA amount.

lta

Standard deduction for the salaried class

In Budget 2018, a standard deduction of Rs 40,000 was introduced in lieu of medical reimbursement and conveyance allowance, which was then increased to Rs 50.000 in the interim budget of 2019.

The survey found that 53 per cent wanted the standard deduction to be increased to Rs 75,000 per year in Budget 2020, 9 per cent said it should be kept at the current amount. About 18 per cent said that the government should do away with standard deduction and allow receipt-based deductions.

std-ded





READ SOURCE

Leave a Reply