Income Tax vs Budget: Even today taxpayers are swinging between the new and old tax regime! Survey reveals..

Even though the government has made the new tax regime attractive and 72% of taxpayers have adopted it, still taxpayers are oscillating between the new and old regime. Global company Grant Thornton India has revealed in its recent survey what the middle class expects from the government before the budget. Especially what the common man is thinking about income tax, it has fully disclosed this in its report.

Grant Thornton India has stated in its report that 57% of individual taxpayers in India want the government to announce tax cuts in the budget for the next financial year. Not only this, despite about 72% of individual taxpayers choosing the new income tax system, 63% of taxpayers are in favor of increasing the incentives available under the old tax system. This means that if the scope of exemption in the old tax regime is increased, then these taxpayers will not have any difficulty in choosing it.

Some are asking for an exemption, some want lower rates.
In the report, to increase attraction towards the new tax system, about 46 percent of the respondents advocated reducing the tax rates, while 26 percent believed that the exemption limit should be increased. More than 500 people participated in this survey. The results of the survey show that individual taxpayers want relief on the personal tax front to increase their disposable income.

Demand to include home loan in the new regime
57 percent of the participants in the survey wanted lower income tax rates, while 25 percent advocated a higher exemption limit in the budget to be presented on February 1. The report says that 53 percent of the respondents are advocating for the government to allow compensation for losses on residential property under the new tax system. About 47 percent of the people want the 'set-off' limit under the old system to be increased or the limit of Rs 2 lakh to be removed completely.

The NPS deduction limit should be increased
Grant Thornton India partner Akhil Chandna said that increasing the tax deduction limit of the National Pension System (NPS) and more flexible withdrawal rules from NPS will boost the retirement savings of taxpayers. Apart from this, clarity is expected from the government on the perquisite taxation rules on the use of electric vehicles (EVs). Along with this, the deduction under the law on the purchase of EVs should also be restored.

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