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Expectations from Budget 2020- What Different Classes of people Expects
On the 1st day of February, 2020 the Finance Minister will present her second budget around 11:00 AM. While only a day is left and the government is busy with the last preparations of Budget 2020, Expectations of people are very high. The finance minister has quite a few things on her table, ranging from slowing demand, low industrial output and the overall GDP growth pegged at an 11-year low of 5%.
As per the opinion of economists, the Budget 2020 will be mostly focussed on reviving a slowing economy and boosting consumption. Some of them are expecting a GST rate cut, while a few are expecting an increase in the deduction limit of section 80C, and other group of people are expecting high about the restructuring of the Income tax slab.
Amidst lots of speculation going on about the expectations from the budget among the common taxpayers, Businessmen, Corporates, Tax experts etc. Ebizfiling team researched what a different class of people expect from the budget,2020. Here is what we got:
Low GST rate:
A lot of people paying GST returns are expecting GST rate cut. The major expectation of the common man and the middle class From Budget 2020 is that the prices of items of daily use should be brought down to make them affordable. various items like consumer durables and FMCG products. falling in between 18 per cent and 28 per cent may be contemplated for a single rate. That would again be a major boost to the economy especially by aiding consumption thereby increasing demand in the economy.
Increase in the Income tax Exemption limit:
The Finance Minister is focused to put more money into the pockets of common man. Now from the budget 2020, the common salaried people of India are looking upon the Finance minister with the hope of restructuring of Income Tax Slabs and extend the exemption limit for individuals. This might be possible because there have been a great fall in domestic demands and the recent corporate tax rate cut can also be the deciding factor for this.
Increase in deduction limit for Section 80C deduction limit:
Again a common tax paying individual depends on Section 80C for most of the tax savings, is expecting an increase in the deduction limit for Section 80C under the Income tax Act. When asked to a particular group of people the same opinion was highlighted that the current cap is 1.5 lakh that doesn’t leave much scope for the common man to expand their investments. So they are expecting a hike in this limit to boost investment in several tax-saving schemes such as personal provident fund (PPF), fixed deposits, home loan repayment, insurance etc.
Benefits of increased tax on housing schemes:
People are expecting that the finance ministry will take such decisions that will benefit a common man by making houses more affordable. In the previous budget FM Sitharaman had provided a Rs 1.5 lakh tax exemption to affordable houses bought under Rs 45 lakh. It is expected that this exemption limit could be raised to Rs 75 lakh this time because an individual cannot buy an affordable house under Rs 45 lakh in large metros especially in Delhi and Mumbai.
Benefits to small businesses, Partnerships and LLPs:
The Small businesses, Partnership firms and LLPs owners are expecting that The government could reduce the tax rate for these business enterprises to create a level playing field among MSMEs. Apart from corporates and manufacturing companies the other forms of business enterprises still pay high tax at 30%. Hence the Partnerships and LLPs are expection low tax rate compared to previous budget.
Low-interest rates from banks:
If the Government can ensure that the interest rates will be brought down for the common man, it would be a major boost for a common man consumption in economy. For a common taxpaying man, interest rates are considered to be still high, especially of private sector banks. The entire repo rate reduction by the Reserve Bank of India (RBI) has still not been passed by the banks to the consumer as well as to the industry.
We asked many business owners, directors, employees, and common men about what they are expecting from the budget,2020 that are going to be presented by tomorrow. Apart from the above expectations that came from various groups and classes of people, one common expectation that emerged unanimously is to see government’s efforts to salvage India’s stagnating economic growth and tackle the declining demand, boost domestic sectors such as the automobile and real estate sector and the ongoing job and solve employment crisis and bring the economy back on track.
Ebizfiling hopes for a better and beneficial budget, 2020.
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