The Income Tax slab has not changed over the last few years. Given that the cost of living has increased drastically and also given the fact that the pandemic had made a huge impact on families the tax slab should have been modified to help the salaried employees. The insurance for dependent parents, the deduction for it has not changed, for a salaried person that should have changed because insurance premiums have increased over last few years. Considering the pandemic, something should have been done on the insurance part. Some of these deductions are merely on paper without giving any relief for the salaried employees.
On the pros, apart from extending the revised return timeline and clarity on the crypto currency taxes, the rationalisation of surcharges on long term capital gains is welcome. It provides clarity and reduces the tax burden on certain transactions.
(Vijay Gopal work as a chief financial officer in Blue Koi and lives with his family of seven)
