The biggest positive trigger for Dalal Street in the upcoming Union Budget 2022 could be any abolition of Securities Transaction Tax (STT).

Market participants will be eagerly awaiting the review of laws dealing with dividend withholding tax, the removal of LTCG on all stock plans, the removal of tax arbitrage between mutual funds, a Mehta Group said in its report.

The report says the budget should introduce a standard deduction for extra expenses incurred by the salaried class to meet communication and infrastructure needs and that the government should consider increasing the deduction limit for interest paid on home loans. , as the pandemic has accelerated demand for new, larger homes to accommodate workspace.

The budget theme will continue to revolve around Covid-19 (increased health spending) and the government should focus on increasing spending in priority sectors such as health, social sector, education and support to sectors such as hospitality, retail. , aviation, infrastructure, agriculture, construction and housing, the report says.

The report further states that the government should consider reducing the scope of transactions covered by TDS compliances, relaxations for non-resident taxpayers in compliance returns where taxes have been withheld appropriately.

(With contributions from IANS)

Posted: Tuesday, January 25, 2022, 4:19 PM IST