As per the discussions held in the Budget 2021 exercise, it is strongly suggested that taxpayers can get a relief in the range of Rs. 50000- Rs. 80000 in the total tax liability.
And if we go by the break up, there can be an increase in the limit of standard deduction i.e. allowed to pensioners and salaried class in the old income tax regime. While for the new income tax regime, a change in tax slab is likely. In the last Budget, the new income tax regime was introduced.
In the new tax regime, tax shall apply at a lower rate and taxpayers would need to do away with some of the allowed deductions and exemptions available under the old regime. As of now, taxpayers are not much keen about the new regime and to make it popular the centre may offer more opportunity in the regime to taxpayers to save taxes.
Tax slabs under the new tax regime
|Income scale||Tax rate|
|Income up to Rs. 2.5 lakh||No tax|
|Rs. 2.5 lakh and Rs. 5 lakh||5%|
|Rs. 5 lakh to Rs. 7.5 lakh||10%|
|Rs. 7.5 lakh to Rs. 10 lakh||15%|
|Rs 10 to 12.5 lakh||20%|
|Rs 12.5 to 15 lakh||25%|
|Rs. 15 lakh and above||30%|
Also, in the old regime, there is being sought an increase in standard deduction which can be increased up to Rs. 1 lakh from the current Rs. 50000 limit and there could be also be extended tax relief on housing loan.