Here’s How An Increase In ‘Standard Deduction’ In Budget 2021-22 Would Benefit The People
Experts believe that the standard deduction must be increased in 2021-22 budget. Here is a look at what the term means and why it is essential for the people.
The Budget 2021-22 is just around the corner and Indian citizens are quite curious about the changes and policies that lie ahead. Experts have been of the stance that it would be a good move if the finance ministry decides to increase the standard deduction as it would provide some relief to the salaried employees. According to FICCI, people have been working from home since the past few months and this means that they have been spending more on their work when compared to earlier days. This includes rampant usage of internet and electricity, amongst others, which has been putting a hole in the working class people’s pockets. The standard deduction currently stands at ₹50,000, which was set in the year 2020.
Here is a look at the ZEE5 video with details related to the standard deduction and how it benefits the working class:
People around the country have been looking forward to the budget session of 2021-22 to see how the government is planning to work on the hard-hit economy. The standard deduction is an important part of the budget, especially for people with salaried income jobs. The term stands for a certain amount of money which is reduced from the overall salary before the tax slab is applied to the amount. This deduction consists of the money that is applicable in the medical claim and transport allowance. This amount is directly deducted from the salary, saving the people from spending time on paperwork and other claim-related complications.
According to the Federation of Indian Chambers of Commerce and Industry, FICCI, the pandemic has forced people to work from home, subsequently increasing their expenditure on work-related needs. Keeping this in mind, the government must increase the standard deduction, allowing people to benefit in such a difficult time. The standard deduction policy was introduced in the union budget of 2018 by then finance minister, Arun Jaitley. At this time, the transport allowance stood at ₹19,200 and the medical reimbursement amount was up to ₹15,000. This section was scrapped from the economic structure and the standard deduction policy was brought back, for the first time since its abolishment in 2005. The standard deduction initially stood at ₹40,000 and was mounted to ₹50,000 in 2020.
Watch more informative content only on ZEE5.