Union Budget 2021: Govt may provide ‘work-from-home’ tax relief; Know how can it be beneficial for employees
New Delhi | Jagran Business Desk: In the wake of the COVID-19 outbreak in the country last year, many people have faced the wrath of the circumstances be it health-wise or financially. Government and other big employers switched to the work-from-home policy for salaried employees to ensure safety. And as the announcement date of the Union Budget for the year 2021-2022 is around the corner, a middle-class taxpayer has high hopes of having relief in taxes. Everyone wants to have more purchasing power and savings considering the present economical hardships caused during the pandemic.
Apart from expecting, a separate deduction for coronavirus treatment from the income tax which includes covering up to Rs 1,00,000 or amount of treatment for the taxpayer, work-from-home tax relief is also being hoped for by people.
Tax relief for work-from-home employees
Since the outbreak of coronavirus, many IT giants and big firms have implemented WFH. Now hopes are high that the government can provide deductions in employees’ expenses as the work-from-home policy. The usual expenditure of a salaried employee while working from home includes- Internet expenses, furniture allowances, laptop/ computer parts, and more. These expenses are being covered by allowances or reimbursements provided by many companies.
However, in the new Budget policy for 2021-2022, it is being hoped that the government will make some tax deductions seeing that most of the salaried personnel are working from home for a year and it may get prolonged due to the ongoing COVID-19 pandemic. If this happens, the new tax policy can ensure that employees who spend some portions of their salaries on things like the internet and other office requirements, can save some money in the form of a tax rebate.
For example, if government adds Rs 20,000 as a tax rebate for buying Rs 20,000 worth of furniture, the employee in the highest tax bracket that is 30% can end up saving the amount near to Rs 6000.
Meanwhile, the date of the announcement of the new Union Budget for 2021-2022 is Feb 1. The annual budget will be presented by Finance Minister Nirmala Sitharaman.
Posted By: Sanyukta Baijal