Budget 2021: Taxpayers do not expect relief this time.
The Union Government will present the Budget 2021 in the Parliament on 1 February 2021 at 11 am. It is believed that Finance Minister Nirmala Sitharaman will not make any changes in Tax Slab this time too. However, she is expected to increase the exemption under Section 80C of the Income Tax Act from Rs 1.5 lakh to Rs 2 lakh.
- January 21, 2021, 6:34 PM IST
According to CNBC-TV18, the Ministry of Finance is considering giving income tax relief to taxpayers through other measures. Under this, the Finance Ministry is brainstorming on the request to increase the exemption limit under Section 80C of the Income Tax Act. At present, tax exemption of up to Rs 1.5 lakh is available under Section 80C. The central government may increase the exemption provided under section 80C from Rs 1.5 lakh to Rs 2 lakh in the budget to be presented on 1 February 2021.
read this also- Big question! Is it safe to eat poultry meat and eggs amidst bird flu? FSSAI released guidelines
Reduction limit can be increased to encourage investmentThe Central Government is planning to increase the exemption limit under Section 80C to give more boost to investment. The government believes that this will increase investment and promote the development of the country. In the budget 2021, the limit of deduction can be increased on the payment of both the interest and principal of the home loan. According to the current tax slab, 5 percent is levied on income between Rs 2.5 to 5 lakh, 20 percent for Rs 5 to 10 lakh and 30 percent tax on those with annual income above Rs 10 lakh. Rates are different for those opting for the new tax regime. Please tell that Finance Minister Sitharaman will present the budget in Parliament on February 1, 2021 at 11 am.