As per a leading business channel report which learnt from sources that this year's budget 2021 will see no tweak in personal income tax rates. Nonetheless some other tax exemption measures to help taxpayers may come through.
And now in her 3rd budget of the NDA 2.0, Nirmala Sitharaman shall struggle to help revive the economy on one hand and maintain government's budget that have been hit.
Current personal tax rates for 2020-21 Financial Year
|Annual Income||Taxation Rate|
|Up To Rs. 2.5 Lakh||No Income Tax|
|From Rs. 2.5 lakh to Rs. 5 lakh||10%|
|Rs. 5 lakh to Rs. 10 lakh||20%|
|Rs 10 lakh and above||30%|
Tax relief possible through other exemption and deductions
Relief for buying affordable house under the scheme can be extended. In the current schema, while computing taxable income up to a maximum of Rs. 2 lakh, the interest paid on loan is not taken. Also, there is a consideration to increase income tax deduction as part of Section 80C to Rs. 2 lakh from Rs. 1.5 lakh. And also the exemption limit as part of Section D can be increased beyond Rs. 25000.
And now the industry expects more stimulus even at the cost of government's fiscal deficit to boost economic progress amid the downturn inflicted by the coronavirus.