Who is most affected by the inflation and the collapsing economy. Obviously the answer will be the middle class i.e. the middle class of the society. Preparations are being made to provide relief to the wounds of the economic troubles of this middle class. For this, Finance minister Nirmala Sitharaman can announce some special schemes in the budget. Looking at the current situation, tax cuts for families with annual income up to 15-20 lakhs can be announced in the budget. Currently, tax is levied on annual income up to Rs 10 lakh. In view of the rising inflation, the government of india can consider reducing the tax. The purpose of this tax cut can be to strengthen the financial condition of the middle class.
Standard deduction may increase
Standard deduction of Rs 50 thousand is applicable in the old tax regime and up to Rs 75 thousand in the new tax regime. Middle class people are troubled by the impact of inflation. Therefore, there is a demand to increase this standard deduction further. In view of this, Finance minister Nirmala Sitharaman can consider it. Similarly, there can be a consideration to give special relief to senior citizens. There is also a demand for this at many levels. From some steps taken by the government in recent times, it seems that the government of india can do something special for senior citizens. There is a rebate of up to two and a half lakhs for senior citizens in the old regime and up to three lakhs in the new regime. This can be increased to seven lakhs in the old regime and up to 10 lakhs in the new regime.
Up to three lakhs can be exempted on interest in home loan
Up to three lakh rupees can be exempted on interest on home loan under section 24B. This can be announced in the budget. Apart from this, a new category can be created for deduction on the principal amount. Earlier, there was a provision of exemption only on interest of two lakh rupees under section 24B in home loan. The limit of discount on health policy premium can be increased to Rs 50,000 for people below 60 years of age and up to Rs 75,000 for senior citizens.
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