2. Increasing the tax benefit under the National Pension Scheme(NPS) to ₹1 lakh is one of the budget expectations, long-awaited by those looking to up their household savings. 14% tax free government contribution to all subscribers under NPS is also proposed.
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3. Rental income deduction as per Section 24(a) of Income Tax is also to be hiked to 50% from the current 30%, while houses under 90 square meters should be completely exempted from paying any tax whatsoever, to make affordable housing for all, a reality.
4. Citing the earlier additional deduction allowed on stamp duty for property purchased under ₹45 lakh as not beneficial to those in Tier 1 cities, an increase is sought. It is recommended that Budget 2020 will allow houses with a value less than ₹65 lakhs bought in metros to benefit from this rule.
5. The MSME sector is seeking changes in the Corporate Insolvency Resolution Process (CIRP), which qualifies them as operational creditors, with no benefits when a buyer undergoes CIRP. Close to 1 crore MSMEs have been affected due to this discrepancy which does not allow payment of due costs from corporate debtors prior to and during the recovery process under the Insolvency and Bankruptcy Code (IBC).
With the Economic Survey to be completed by the end of January, and the budget to be presented a day later, the nation will be keenly watching what the Finance Minister has to offer this time.
From measures to rein in the growing fiscal deficit to tax sops for salaried class, corporate sector, real estate, MSMEs and introduction of progressive schemes to spur the growth of the economy, the government has its work cut out. Appeasing everyone is not going to be easy. We can only wait and watch as we hope that the budget brings in much needed good news.