New Delhi: Finance Minister Arun Jaitley won millions of hearts in Union Budget 2017 by reducing the tax rate for individuals falling in the tax slab of ₹2.5 Lakh to ₹5 Lakh. While 5% tax rate didn’t hurt the pockets as much as 10%, expectations are now set high in the Corporate or Salaried class of taxpayers from Budget 2018. Here are five jobs-related announcements that are likely to make way in Union Budget 2018:
1. Job Creation aka National Employment Policy
With Job creation rate falling to a six year low and unemployment rate rising to a five-year high, job creation should be one of the most important job-related announcements expected in Union Budget 2018. With no current National Employment Policy or job creation roadmap in place in the country that adds 10 million young men and women every month to its workforce, this is the need of the hour.
2. Exemption Limit for Salaried Individuals
Raising the exemption limit from current ₹2.5 Lakh to ₹3 Lakh, if not ₹5 Lakh is highly expected from the Finance Minister. This is going to impact the low to mid-income category of individuals directly.
3. Minimum Wages
90% of India’s workforce is engaged in informal employment, therefore announcements on Minimum Wages or Social Security Laws in the labor-intensive sectors can render a big boost to the government as well as the economy.
4. Extension of Peak Tax Ceiling
Another direct tax related announcement that will impact the salaried class is the extension of Peak Tax slab rate. Many experts feel that India should move on the lines of its global counterparts and move the peak tax rate of 30% to income above ₹20 Lakh.
5. Standard Deduction
Standard Deduction is another jobs-related overhaul Union Budget 2018 may present. The re-introduction of this long abolished policy will give a ₹1 Lakh relief from the tax burden of salaried individuals.
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