New Delhi: Salaried individuals have not received any additional relief in the form of a standard deduction, as it has remained unchanged for all individuals, regardless of their income levels.
Anand Rathi Advisors in a pre-budget report said that an amendment can be proposed for application of standard deduction as a percentage of an individual’s salary income, ensuring fair and equal benefits for all employed individuals.
An enhanced standard deduction will provide tax relief to individuals in the middle and lower-income groups who may not have access to various tax-saving investments and deductions which will reduce the tax burden on these segments of the population
Samir Bahl, CEO – Investment Banking, Anand Rathi Advisors Ltd., said, “As navigating the current economic landscape in India, we strongly believe that an increase in the standard deduction is imperative to alleviate the financial strain imposed by the rising cost of living. The steady inflation and other economic factors have significantly elevated our day-to-day expenses, making it challenging for many of us to make ends meet.
By increasing the standard deduction, the government can provide much-needed relief to taxpayers.
Atul Thakkar, Director – Investment Banking, Anand Rathi Advisors Ltd. said that the standard deduction has remained largely stagnant from FY 2004-05 to FY 2022-23 leading to minimal savings in taxable income for salaried individuals.
“An increase in standard deductions will lead to increased spending and consumption which will indirectly increase GST revenue for the government. In our humble opinion, we propose that standard deduction should be considered as percentage of total income from salary,” he said.
–IANS