The salaried class will be eagerly watching out for some relief on the Income Tax front when Finance Minister Nirmala Sitharaman announces Budget 2022.

Live TV

Loading...

The government had last reduced tax rates in financial year (FY) 2017-18. In order to widen the tax base, the government had introduced a concessional tax regime which was effective FY 2020-21. Those individuals opting for the concessional tax regime are taxed at lower rates but have to forego most deductions and exemptions. It is expected that to further widen the tax base, the government would not make any changes in tax rates in Budget 2022 but may rationalise the concessional tax regime.

>> Ahead of Budget 2022, here's a look at the current income tax slabs

At present, maximum amount of income which is exempt from income-tax in case of individuals below 60 years of age is Rs 2.5 lakh. For senior citizens, this limit is Rs 3 lakh and for super senior citizen, the limit is Rs 5 lakh.

Many experts have argued that the limit be raised, since various exemptions under Section 80C have been stagnant for a while now. A higher threshold limit for I-T exemption will increase disposable income in the hands of households and thereby boost consumption in the economy, they say. It is all the more required given the steadily rising inflation over the years.

For all the latest updates on Union Budget 2022, follow our LIVE blog here

For full coverage of Union Budget 2022, click here