Interview | COVID cess, tax rebate, WFH deduction, Section 80C: What you can expect from Budget 2021? Experts explain
New Delhi | Abhinav Gupta: With the Union Budget 2021-22 coming in the midst of the COVID-19 pandemic, Finance Minister Nirmala Sitharaman faces a double challenge - reviving the pandemic-hit economy when the government’s expenditure commitments are already up and living up to the expectations of the common man and various sectors.
Vaccinating over 130 crore people of the country will incur heavy expenses and at a time when people are suffering from job losses, pay cuts, increased cost due to inflation and challenges of adapting to the new normal, the government faces a stiff challenge of spending capacity.
The finance minister has hinted that Budget 2021 shall be unlike any other presented in the country as this one is post a pandemic- the focus will be on growth and building of our economy.
Ahead of the Budget announcement, Jagran.com held an exclusive conversation with two experts - Mr Amarjit Chopra, former ICAI President and tax expert Mr Balwant Jain - where the two spoke on a range of issues, ranging from the common man’s expectations from the Budget to the possible announcements that can be made by the finance minister on February 1.
They emphasised on the fact that creating demand was the need of the hour, but ruled any major tax sops that the government may announce this time. Mr Chopra highlighted that the government does not have much scope to make some big announcements for the common man, owing to the heavy expenses that will be incurred in handling the pandemic and the inoculation drive.
Meanwhile, Mr Jain said that the government may provide some relief to taxpayers to compensate for the higher cost incurred while working from home; perhaps some deductions for expenses like electricity etc or some kind of fixed deduction.
They suggested that the government focuses on promoting job creation in the industrial sector which not help boost the economy but also increase the per capita income which has been battered by the pandemic and the lockdown.
Watch the full interview here:
Posted By: Abhinav Gupta