Budget 2021 Income Tax Slabs and Rates, Income Tax Budget 2021 Announcements Updates: Ahead of the Budget presentation, income tax experts and professional bodies like ICAI recommended the government to increase the deduction limit under Section 80C of the Income Tax Act.
No Change in Income Tax Slab, Budget 2021 Income Tax Slabs and Rates
Union Budget 2021 Income Tax Slabs Live Updates here
Income Tax Slab Rates 2021-22; New rules for Senior Citizen ITR, NRIs, PF, ULIP: Finance Minister Nirmala Sitharaman on February 1 announced several proposals for the benefit of depositors, investors and taxpayers. Sitharaman said that the tax system should put a minimum burden on the taxpayers. The Finance minister surprised taxpayers by not announcing any change in income tax slab rates. She also did not announce the proposal to introduce much-hyped Covid cess. Relief from filing ITR has been provided to senior citizens aged 75 years or above. The Budget also had some good news for retired NRIs. FM Sitharman proposed to make dividend payment to REIT/InvIT exempt from TDS.
The finance minister proposed to provide GST relief by reducing inverted GST structures. For this, the Government will take the necessary steps, she said. The Finance Minister proposed that senior citizens (above 75) earning only pension and interest income from deposits would not be required to file Income Tax Return. The government has proposed to allow tax exemption on maturity of ULIP having annual premium up to Rs 2.5 lakh. EPF interest income above Rs 2.5 lakh will be taxable. Interest income from PF contribution above Rs 2.5 lakh/year will now be taxed, as per Sitharaman’s Budget proposals.
Sitharaman had earlier promised to present a “budget like no other”. It was hoped that this year it will be a Budget like no other for taxpayers as well. The finance minister was expected to provide relief to the pandemic-hit common man as well as focus more on driving economic recovery. Experts believed that Budget 2021 could be the starting point for picking up the pieces after the economic destruction caused by COVID-19 pandemic.