The union budget will be telling of the future economic growth of India and is thus much awaited. The Union Budget is being revised by Finance Minister Nirmala Sitharaman. Income tax benefits are being calculated by the minister in the flavour of Indian citizens. Here are 4 benefits that can be expected:1. Deduction limit of 80D The deduction of the limit for medical insurance premiums under Section 80D should be increased from ₹25,000 to ₹50,000. For senior citizens, it may be increased from ₹50,000 to ₹75,000 considering their healthcare costs. Archit Gupta stated that extending Section 80D benefits to the new tax regime would promote equitable access to healthcare.2. TDS compliance being relaxed for home buyers.To make matters less complicated the 1% TDS being deducted on property purchases over ₹50 lakh is being reconsidered. NRIs can not use the same 26QB forms as Indian residents.3. Capital gains taxation being simplified.Currently, the capital gains tax regime is not very investor-friendly as many factors must be considered. There is a list of factors: asset classes, tax rates, holding periods, and residency status. The CEO of ClearTax expressed, “The government should streamline the classification of equity and debt instruments, unify tax treatment for listed and unlisted securities, and simplify indexation provisions.4. Bengaluru classified as a metro city for the exemption of HRA Although Bengaluru is considered a metro city by the Indian Constitution, it is still not classified as a metro city when it comes to tax purposes. Due to this, the city gets limited to 40% HRA deductions instead of the 50% that metro cities get. Finance Minister Nirmala Sitharaman and ClearTax Founder and CEO Archit Gupta are making an effort to improve the world of Income Tax for the people of India.
