Budget 2022 Expectations: Finance Minister Nirmala Sitharaman to announce WFH allowance for employees in budget?
It is expected that the Union Finance Minister will not disappoint the taxpayers in the upcoming budget. With the ongoing COVID-19 situation in the country, certain benefits can be given to the employees who are in the condition of work from home (WFH).
Union Budget 2022: The Union Minister of Finance Nirmala Sitharaman is expected to present the Union Budget 2022 on February 1, 2022. In the previous budget, the main focus of the government was on health and rural infrastructure development. This year, the Omicron variant of COVID-19 has raised concerns amid the economic recovery in the economy.
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It is expected that the Union Finance Minister will not disappoint the taxpayers in the upcoming budget. With the ongoing COVID-19 situation in the country, certain benefits can be given to the employees who are in the condition of work from home (WFH).
Work from home (WFH) allowances for employees?
It can be said that WFH has certainly increased the expenses of the employed person. Due to WFH, the internet broadband, telephone, furniture and electricity bills are higher than before. Earlier, all these expenses were saved in office infrastructure. Therefore, speculations are being made that in the Union Budget 2022, the salaried person might get the gift of work from home allowance from the government.
Tax exemption for WFH employees?
Tax services and financial services company Deloitte India has demanded that employees should be given work from home allowance. If the government cannot give the allowance directly, then a provision for tax exemption should be made. Citing the WFH culture in Britain, Deloitte said that the government has made special rules to give tax relief to the employees in Britain. In India, those who do jobs in this way can be given exemption. Deloitte India advises that employees working from their homes should be given work from home deductions of up to Rs 50,000.
What has ICAI demanded?
One must note that the Institute of Chartered Accountants of India (ICAI) has also made a similar demand in its recommendations. ICAI recommends that the government should provide tax relief on work from home expenditure in the budget 2022. The tax exemption should be given on the expenditure on furniture or office setup at home. If the employee buys furniture such as desk, chair or other items for office work, then the employee will have to pay tax on that expense on his behalf, while the work is done for the office.
Will the government raise the standard deduction limit?
ICAI demands that taxpayers should also give relief in the standard deduction. There is a need to increase its limit. Currently, the standard deduction limit under income tax is Rs 50,000. It should be increased to Rs 1 lakh. The standard deduction is being sought for expenses incurred on office work and is in addition to professional tax.
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