Budget Expectation 2022-23

By Mr. A Ganesan, Group Vice Chairman, Neuberg Diagnostics

1) Personal Income Tax reduction: There has been no increase in the personal income tax threshold for the last several years. The threshold limit has to be increased to Rs 5 lacs for less than 60 years, Rs 6 lacs for senior citizen and Rs 8 lacs for super senior citizen. Section 115 BAC has to be deleted.

2) Increase medical insurance premium deduction: In view of the Covid pandemic, which is threatening to become an endemic, the insurance companies have increased the premium quietly and in view of the above the insurance premium deduction has to be appropriately increased for all classes.

3) Medical expenditure deduction: Currently, those who do not have a healthcare cover, are entitled to claim up to Rs 50,000 towards medical expenditure incurred. There are a number of people, who do not have a health cover, particularly, those above 60 years. This section of people have again dealt with a body blow due to the pandemic. In view of the above, this limit has to be increased substantially or at least up to Rs 1,00,000.

4) Persons having Income above Rs 50 lacs – To furnish Assets / Liability statement: This requirement was introduced almost 7 to 8 years back. With income levels going up to salaried class, those having taxable income above Rs 50 lacs (salaried class) have gone up substantially. Again, the AL statement actually does not serve any major purpose. Hence, this requirement has to be done away with for at least salaried persons and the limit has to be increased Rs 1 crore for others.

5) Penalty under section 270 A – 200% is very harsh. The definition of misreporting / wrong reporting can be interpreted in either way with the result, taxpayers who never had any intention to conceal are facing huge penalties. These high-pitched penalty assessments are likely to be litigated for long and the intent of this section might get diluted. The penalty cannot be more than 100% of tax sought to be evaded.

6) MSME cash flow crisis: MSMEs are still facing difficulties as regards receivable payments and even Government departments (state as well as Central) are not respecting the MSME laws. In fact, the maximum defaulters are only public sector undertakings and Government departments. The Government has to introduce stiffer penalties for defaulters so that the MSMEs get adequate protection from cash flow crisis.

7) GST reduction: GST has to be reduced significantly across all products and services, to spur consumer spending and the petroleum products have to be brought under GST. Healthcare services have to be brought under GST regime with 1% levy so that they are able to avail the input credit available, which go as waste now, resulting in higher cost of services. If this is done, the overall cost of healthcare services will actually come down benefitting larger section of the people.