The employees who are on salaries and are working from home might get relief from the tax deduction this year. The government may provide deductions for expenses incurred by salaries in the upcoming Union Budget, consulting firm PwC India said on Thursday.
Rahul garg said that demand creation is focussing on money being given or left in the hands of the individuals who are a senior tax partner at Pwc India.
“One clear thinking is at the level of small to medium taxpayers can we look at, in view of the Covid, a deduction to them particularly for salaried employees when they work from home,” Garg said.
"So whatever expenditure they are incurring working from home, which expenditure in the typical case would have been incurred in office by their employers if they were using offices to work if you allow that to be treated as giving them an entitlement for deduction and that saves tax for them. It will leave more money in their hands."
Many companies have adopted the work from home policy due to the fast spreading virus.
Garg said such a measure would be "reasonably equitable" because if businesses were to incur that expense, that would have been a deductible expenditure in their books.
With regard to the imposition of Covid cess, Jain said, "My sense is that if they want to collect an additional amount of money and if they fund expenses for vaccines then it would be broad-based and not limited to few products and would be applied on base value and not on tax component".
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Covid-19 | Tax Deduction For Employees | Government May Consider Tax Deduction For Employees
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