Union Budget 2021: The date for presenting the budget is now coming closer. This time the budget is being presented at a time when not only is there a historic decline in the economy of the country due to the coronavirus, but retail investors have to face it. Due to the coronavirus epidemic, their returns have been affected throughout the year. In such a situation, retail investors have great expectations from the Finance Minister in the budget this time. While retail investors want more tax exemption to increase demand, some are asking for relief from tax-paying tax on returns. These things have come out from a Twitter poll. Financial Express Online Hindi wanted to know the opinion of retail investors through a Twitter poll.
What did investors say in the poll?
In the Twitter poll, 39.3 percent of the people said that they should be given relief in dividend tax. At the same time, 25 percent people want more relief in LTCG tax. To increase demand, 18 per cent and 18 per cent people want a tax exemption and a relief package for the industries that are most affected by the coronavirus epidemic.
What will happen if tax relief
If the government gives tax relief in the budget, it will not only save salaried class but will also help in increasing liquidity in the market. Consumption story will be better there. Income tax exemption limit for individual taxpayers below 60 years is 2.5 lakhs per annum. There is no change in this limit from FY 2014-15. In the last budget, the Finance Minister introduced a new income tax structure, which was optional. However, in the alternative system, it is believed that higher slabs are more beneficial in this. In this case, the original exemption limit can be increased under the existing tax regime.
Benefit from the removal of dividend tax
If you get relief from tax on dividend, then the returns from the market of the retail investors will increase. Earlier, it used to be on the company paying tax dividend. But companies said that after paying corporate tax, this tax is like a double whammy. After which the burden was put on the investors to give relief to the corporate.
If the industry is suffering from the coronavirus epidemic such as aviation, tour and travel, then these sectors will gain momentum. Retail investors will also benefit from this.