Taxpayers expect these from the budget
Union Budget 2021: There is still at least two weeks to announce the annual budget. In such a situation, the expectations of taxpayers rests on the Finance Minister like every time.
- January 16, 2021, 1:46 PM IST
In last year’s Union Budget, the Finance Minister introduced a new income tax system in the Budget of 2020 21. In the new tax system, low rates of income tax have been proposed for taxpayers with annual income ranging from Rs 5 lakh to Rs 15 lakh. With this, the Finance Minister abolished many types of tax concessions and exemptions. About 120 rebates and concessions were given in the old tax system, out of which 70 have been removed.
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The new system was introduced last yearIn last year’s Union Budget, Finance Minister Nirmala Sitharaman introduced a new income tax system in which seven tax slabs were included. Zero, 5%, 10%, 15%, 20%, 25% and 30%. Whereas the old tax rule included four slabs zero, 5%, 20% and 30%. Both these tax rules were in force for the taxpayer. Although the tax rates on income between 5 lakh and 15 lakh rupees are low in the new income tax system, there will be no tax exemption and deduction.
Deduction at 80C
Currently under Income Tax Act 80CCE, income under Section 80C, 80CCC and 80CCD (1) is exempt from income tax on a total income of Rs 1.50 lakh a year. This will make people more attracted to savings. Let us know that many tax savings investments come under this section. People are expecting the Finance Minister to increase it to Rs 2.5 lakh.
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In order to accelerate the momentum in the real estate sector, the government may increase the standard deduction of 30 per cent of net annual value to 50 per cent. Or increase the current limit of deduction of interest payable on housing loans on self-occupied property to 4 lakhs per annum.