Union Budget is round the corner and the expectations are high. Each sector has their own set of demands or wishes for the benefit of their business. Salaried class is not a sector but it is associated with every sector is facing problems at every front since the COVID-19 outbreak. As we emerge from the pandemic, employees are expecting some WFH allownace from this upcoming Union Budget 2022. But, what is exactly this WFH Alllowance that employees are expecting?
What IS WFH Allowance?
Many businesses are experimenting with hybrid working model in which employees work both on-site and remotely. The employees are wish that this concept must be officially recognised for Special Economic Zone units without affecting indirect tax advantages sought by businesses. As employees across the industries and organisations are increasingly working from home, they are expected to incur additional Work from Home (WFH)-related expenses such as internet fees, rent, furniture, power, and so on, and employers will need to pay allowances to cover these costs. The WFH is all about making this expense cover under one umbrella name WFH allowance.
Tax and Demands
Employees should be compensated for these menioned additional expenses incurred while working from home including a one-time setup cost, as the COVID-19 pandemic and subsequent protocols have created an environment in which employees can now work from anywhere. To cover this one-time setup cost, up to Rs 50,000 each financial year can be allocated as tax-deductible costs over and above section 80C, and average support expenses of up to Rs 5000 per month or Rs 60,000 per year can be allocated as tax-deductible expenses. Furthermore, it is also suggested that if a direct benefit cannot be offered, a provision for tax-related relaxations should be established.
Other Expectations Associated with WFH Allowance
The expects also suggestes that given the present state of the pandemic in the country and the efficacy and use of hybrid or remote working modes in the medium to long term, WFH and its financial impact on employees is definitely a major issue that may be addressed in the Union Budget 2022-23.
In addition, In terms of health and wellbeing, a greater medical coverage for employees that includes mental as well as physical health might be a welcome consideration, given the pandemic's long-term negative impact on the health of the individuals.
WFH and hybrid working are two types of work cultures that benefit both people and companies. Issues such as the pandemic that sparked this mentality are actually assisting employment development rather than limiting work prospects.
Many businesses equip workers with laptops, PCs, and furnishings so they may work from home. Others pay employees a certain amount to cover the costs of working from home. The budget should spell out how corporations should account for these expenditures and give some relief for employees who get such benefits.