Revised Income Tax Slabs Rates in India for FY 2021-22 Live Updates: Finance Minister Nirmala Sitharaman is set to present her promised “budget like no other” today. It remains to be seen whether this will be a Budget like no other for taxpayers as well. The finance minister is expected to provide relief to the pandemic-hit common man as well as focus more on driving economic recovery. Experts believe that Budget 2021 would be the starting point for picking up the pieces after the economic destruction caused by COVID-19 pandemic. The salaried individuals are hoping that the government will broaden some tax advantages through Budget. In the run up to the Budget presentation, several experts and professional bodies like ICAI have recommended the government to increase the deduction limit under Section 80C of the Income Tax Act. Some have suggested the government to allow higher deduction under Section 80D and increase the deposit limit in PPF to Rs 3 lakh.
A number of experts believe that the government may introduce a covid cess to be imposed on HNIs. However, opinions are divided on this issue. According to CA Ashutosh Aggarwal, Co-founder, Taxlegit, the Finance Ministry may put forward the fundamental tax insurance limit for individual income taxpayers to Rs 5 lakhs from Rs 2.50 lakhs at present, in a proposition to improve net disposable revenue in the hands of taxpayers. It is also expected that the government would rectify Section 24(b) of the Income Tax Act, 1961. This section allows the reduction of income on house loans from the taxable earnings. The salary people or the workers who lost employment due to the pandemic also want the administration to announce a reduction in EMI or Rent under a separate section.
For Income Tax calculation, visit the tax calculator page of financialexpress.com (Note – FE’s Income Tax Calculator will be updated by tomorrow as per the announcements made by FM Nirmala Sitharaman’s Budget Speech.