Budget 2022: Income tax deductions and benefits that the salaried expect

Budget 2022 is round the corner. As COVID cases unfortunately have seen a spike recently in the country, there are heightened expectations among taxpayers that reliefs and deductions should be provided to individuals. Some key expectations are mentioned below.

Decrease in the income tax rates

Currently, the highest tax slab rate for individuals is 30 percent. Moreover, due to the surcharge and education cess, the tax rates of individuals may be as high as 42.744 percent while the tax rates applicable for domestic companies is only 25 percent (plus applicable surcharge and education cess).

In light of the above, taxpayers would be happy to see a dip in the tax rate from 30 percent to 25 percent for individuals having income over Rs 10,00,000 (under the existing regime) and income over Rs 15,00,000 (under the new regime).