Budget 2022: ‘Income Tax calculation on Fixed Deposit and other savings should be done as equity’

Given low returns from bank fixed deposits and other savings schemes, a lot of investors are lured towards risky assets these days. Experts feel that Budget 2022 should provide an incentive to bank depositors in the form of tax relief to curb this rising trend. Experts also feel that the upcoming Budget should provide tax incentives to salaried individuals in the form of enhanced deductions from salary income and tax savings on schemes qualifying under Section 80C.

Against this backdrop, Mitesh Jain, Partner, Economic Laws Practice (ELP) has been quoted by The Financial Express (India) in their article titled ‘Budget 2022: Income Tax calculation on Fixed Deposit and other savings should be done as equity’. Mitesh is of the opinion that the standard deduction for the salaried individuals should be increased to provide relief to the salaried personnel. He further adds that a new allowance may be introduced for salaried personnel who have been working from home during the pandemic and the limit of investment deduction under Section 80C to be enhanced.

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