On February 1, 2022, Union Finance Minister is set to introduce the Union Budget 2022. The government's main focus in the previous budget was on health and rural infrastructure development. The Omicron variety of COVID-19 has caused alarm this year, despite the economy's improvement.
The Union Finance Minister is anticipated to provide a budget that does not disappoint taxpayers. Due to the ongoing COVID-19 situation in the country, certain benefits may be available to employees who work from home (WFH).
Allowances for employees to work from home (WFH)?
WFH has, without a doubt, increased the expenses of the employed person. Internet broadband, telephone, furniture, and power expenses have all increased as a result of WFH. All of these costs were previously saved in office infrastructure. As a result, talk is rife that in the Union Budget of 2022, the government would give the salaried individual the gift of a work-from-home stipend.
Employees of WFH get a tax break?
Deloitte India, a tax and financial services firm, has demanded that employees be paid a work-from-home allowance. If the government is unable to provide the allowance directly, a tax exemption provision should be provided.
Recommnedations by Federation of Indian Chambers of Commerce and Industry
1) To strengthen the housing and real estate sector by providing interest subsidies to home loan applicants. An interest subsidy of three to four percent on house loans could also be granted for four years.
2) Providing new gas connections and free first refills. The Federation of Indian Chambers of Commerce and Industry proposed that the government subsidize the use up to seven cylinders every year.
3) Increase collateral-free loans under the Credit Guarantee Fund Trust for Micro and Small Enterprises to Rs 5 crore from Rs 2 crore and GST registered MSMEs' invoices be automatically published on TReDS.
4) The deadline for newly incorporated domestic firms to begin manufacturing be extended from March 31, 2023 to March 31, 2025.
5) Encouragement of government to address the issue of non-fund credit to the sector.
6) To release a quarterly bidding calendar for the National Monetization Pipeline and the National Infrastructure Pipeline in order to encourage private sector participation.
7) The National Bank for Financing and Infrastructure Development should be operationalized as soon as possible.
8) Deferring the Faceless Scheme proposal for conducting Income Tax Appellate Tribunal proceedings.
9) The Dispute Resolution Committee's jurisdiction to be expanded to include mid-sized and large-sized taxpayers by eliminating the disputed addition and the Rs 10 lakh and Rs 50 lakh return income ceilings and DRC should be given the authority to address specific concerns rather than the entire appeal.
10) Providing a 15% tax break to businesses who invest in green technologies on or after a certain date, as well as granting a full deduction for green technology asset investment/purchase.
11) Establish a loan guarantee programme for rooftop solar projects in the residential sector, which can easily contribute 15% of total rooftop solar capacity.
12) Create tax hurdles for several bona fide share transactions, such as fresh allotment of shares under various modes such as preferential allotment, rise in the value of shares between the date of agreement and consummation of transaction, rights issue without change in control, bonus issue.
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