The Union Budget 2022-23 process kick-started in October 2021, barely a couple of months after the disastrous second wave and the resultant lockdowns and shutdowns in many states, including Odisha, in the country. Will the budget offer the balm for the lockdown burden on employees?
Though the country didn't see lockdown, it went regional. Lockdowns ruled the streets from March and reigned in parts till early September. As a consequence, work from home has emerged as the new normal in the pandemic era.
And employees are fervently hoping for relief on personal taxes from the Finance Minister.
Pandemic Relief
As per Deloitte, the Union Budget 202-23 may introduce additional deduction towards “work from home. Explaining the rationale, the ace research firm outlines the following.
- Considering the current situation, whereby employees are working from home across businesses, employees are likely to incur additional “work from home”-related expenditure, such as internet charges, rent, electricity, furniture, etc.
- The consequence, as per Deloitte, is employers would need to provide allowances to meet these expenditures.
- The research agency has cited the instance of the UK where the government has provided a flat rate of GBP (British Pound) 6 per week of tax relief for additional household costs if one has to work from home.
- The agency, therefore, is of the view that the Budget many give an additional deduction of “work from home” allowance of Rs 50,000 to employees who are working from home.