all eyes are on finance minister nirmala sitharaman as she will be presenting the union budget 2021 today ie february 1 there is more interest and expectations this year from the budget due to the novel coronavirus pandemic and the impact it has had on various segments of the economyfor the salaried class the year 2020 was marred with job loss pay cuts higher inflation and so on that is why many are hoping for announcements that can at least help ease their tax burden here is a list of some of the expectations of the common man from the union budget 2021 hike in tax exemption limittop on the wish list of the salaried class is a hike in the basic exemption limit from the current level of rs 25 lakh the last time tax exemption limit was hiked was in budget 201415 though sitharaman announced a new tax regime in last years budget which offered lower tax rates however no changes were made in the tax exemption limit by hiking the tax exemption limit the government can incentivise people to spend more and boost consumption in the economyhomi mistry tax partner deloitte india says the immediate expectation is to reduce the tax burden of taxpayers the covid19 pandemic has affected everyone in some way or the other increasing the basic exemption limit will provide tax respite to individuals increase liquidity and give a boost to the economyyou might also likesalaried expect tax relief on work from home expenses in budget 2021hike in deduction allowed on health insurance premium paidthanks to the pandemic many of us have become aware of the importance of health insurance and the role it can play in protecting our finances in case of a medical emergency at present income tax laws offer tax benefit on the health insurance premium paidan individual can claim a deduction of rs 25000 for health insurance premium paid for self spouse and dependant children additional deduction of rs 50000 is available for health insurance premium paid for parents however there is a need to hike the deduction amount available on the health insurance premium paid so that an individual can buy adequate medical coverage for their familysurabhi marwah partnerpeople advisory services ey india says the limits currently prescribed rs 25000 to rs 100000 which depend primarily on the age of the individual and the coverage of family members under section 80d are not inline with the likely expense that an individual may incur it is an ask that the overall limit be increased to reflect the onground realityyou might also likebudget 2021 could give more tax relief on medical expenditure insurance in wake of covidleave travel concession ltc cash voucher schemein october of 2020 the government announced the ltc cash voucher scheme to provide a tax benefit to individuals and also to boost consumption in the economy the last date to avail the benefit under the scheme is march 31 2021 as per tax experts the government should extend