The new year's Union budget for 2021 is about to come. Check what all expectations common people have from the government.

1. VINOD K AGRAWAL & ASSOCIATES, CA
FOR MORE DETAILS: https://cavkagrawal.business.site/ Page 1
Need for tax exemption to increase demand,
know on which front it will benefit
“Finance Minister Nirmala Sitharaman has described the budget for the upcoming
fiscal as a budget that has never been presented in such an environment before.
This Union Budget can focus on increasing government spending to improve the
country's economy.”
After the decline in the growth rate of the economy in 2020, some important steps are
expected to be taken by the government to give a new momentum to the economy. The
present economic situation must also be considered before anticipating tax relief. There
is a lot of pressure on the financial resources of the government. It is expected to shrink
to 8-10% of GDP. The fiscal deficit is at record highs. Also, large-scale spending on the
Corona Vaccination Program is planned. The need to increase government expenditure,
especially capital expenditure, is increasing. Therefore, it is useless to expect large
scale rationalization in income tax slab or rate.
Personal Finance Approach
Many economic experts have sent their recommendations to the Finance Ministry to
give relief to taxpayers. According to sources, in the current adverse situation, the
government may announce several relief measures or concessions in the Union Budget
2021 under the self-sufficient India package. This will help people to combat the effects
of the corona virus epidemic. At present, there is a lot of pressure on the financial
resources of the government. The finance minister may announce the issuance of some
savings schemes or tax-free bonds, which will provide the government with financial
resources for spending. Investment-based relief and flexibility can be found in this
budget to make up for the economic loss. Investment and bond issuance of retail
investors will also be encouraged in these schemes. Capital gains in relation to
investment and STT in relation to investment will also boost the economy.

2. VINOD K AGRAWAL & ASSOCIATES, CA
FOR MORE DETAILS: https://cavkagrawal.business.site/ Page 2
Expectation from budget
The time of the government budget for the New Year i.e. FY 2021-22 is approaching.
The general public, which has been troubled all year by Covid-19, needs great relief. Let
us know what his expectations can be from the government in the budget.
1. Increased deductions for medical costs:
The awareness of health has increased among the people due to Covid-19. In such a
situation, it will be right to increase the deduction of Rs 5000 now available at the health
checkup. Expectation of deduction for medical tests and treatment by the general public
will be justified.
2. Relaxation is essential in residential status:
It would also be reasonable to expect a concession in the Norms to assess taxable
income according to residential status as many people are stuck in India due to
restrictions on international air travel.
3. Remove Five-year condition on PF withdrawal:
Withdrawal of money from PF is taxed if not in job for five years. A five-year bet can be
expected to be lifted given the job losses during the Covid-19.
4. Standard deduction for WFH infrastructure met:
Work from home has become new normal due to Covid-19. Professionals have to pay
additional expenses for communication and infrastructure. Giving benefit of standard
deduction for these expenses would be a welcome step.
5. Increased standard deduction of housing property expenditure:
Due to the epidemic, demand for housing property has come down and rental income
has come down. Despite the property being vacant, the house owners have to pay the
maintenance cost of their income. It would be appropriate to increase the rate of
standard deduction by 30% for at least two years.