The annual budget time has come. On 1st February 2021 finance minister of India Mrs Nirmala Sitharaman will present the budget for the financial year 2021-22 in Loksabh. Every pink paper and some white one also are publishing expectation from the budget. We also have a list of expectation from the budget.
The annual budget time has come. On 1st February 2021 finance minister of India Mrs Nirmala Sitharaman will present the budget for the financial year 2021-22 in Loksabh. Every pink paper and some white one also are publishing expectation from the budget. We also have a list of expectation from the budget.
There are many expectations related to Income Tax like change in tax slabs, a higher deduction for 80C, housing loan interest payment, medical insurance etc.
However, We have only on expectation from the budget that has any probability of getting fulfilled. Our expectation is the standard deduction for income from salaries will increase from current rupees 50000 to 60000.
Below is the list of expectation from different pink papers.
Most of the expectation is related to tax deduction limit related to 80C, housing loan interest payment and medical insurance premium. These expectations have not changed from the last 4-5 years.
We want to change the current tax slab for personal income tax with no surcharge and cess. All deduction available in the current structure should continue except one. The standard deduction for salary income should increase from current rupees 50000 to 400,000. The tax slab is presented in the below table.
| Income Range | Tax Rate |
|---|---|
| 0-100,000 | 0% |
| 100,001-500,000 | 1% |
| 500,001-750,000 | 5% |
| 750,001-1,000,000 | 10% |
| 1,000,001-1,250,000 | 15% |
| 1,250,001-1,500,000 | 20% |
| 1,500,000+ | 25% |