Key Highlights of the 2021 Budget. The coronavirus epidemic caused financial problems for many.
Barriers encourage sector-after-sector, people lose jobs and uncertainty deepens. The health impact of
the COVID-19 epidemic introduces unexpected expenditures for the personal budget. The middle class
will expect unemployment in 2020-21 central budget to help overcome these problems. If anything,
middle-class taxpayers expected certain tax breaks so that they had more money in their hands than
their salaries.
The basic tax exemption limit was
raised from Rs 2.5 lakh to Rs 5 lakh per annum to increase the amount of money
in the hands of the people in the self-respecting
You may also, like- Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21 [This Excel Utility can prepare at a time 50 Employees Form 16 Part B]
In the 2021 interim budget, the
Center had proposed to increase the basic income tax exemption limit to Rs 5
lakh per annum. The discount limit has not been increased though. Last year,
the government kept the exemption limit unchanged but allowed taxpayers to
choose between a lower tax rate or an exemption between the existing tax and
tax system.
There is a demand to increase the
standard deduction from the current Rs 50,000. As a result, taxpayers' medical
reimbursement and travel allowance discounts will be reduced from standard
discounts to 2019-20. Was removed from the fiscal year. The standard waiver
ensures that taxpayers have a portion of their salary that is not subject to
income tax.
With the increase in the standard
discounts, people will have more money to pay for medical bills and higher fuel
costs. Some reports have suggested that the standard exemption limit could be
increased from Rs 755,000 to Rs 100,000 depending on the Finance Ministry's
assessment.
You may also, like- Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21[This Excel
Utility can prepare at a time 100 Employees Form 16 Part B]
There is a demand to increase the
benefits for domestic workers in the real estate sector under Section 80C and
Section 24B of the Income Tax Act. This will give taxpayers more disposable income,
but it will also bring back demand in the residential real estate sector.
Paid classes will expect tax breaks
against allowances paid by employers for setting up workplaces at home. As
working from home became the norm, some companies paid their employees to buy
the necessary furniture and equipment. However, this amount is taxable in the
hands of employees.
You may also, like- Automated Income Tax Revised
Form 16 Part A&B for the F.Y.2021-22[This Excel
Utility can prepare at a time 50 Employees Form 16 Part A&B]
Considering the inconveniences
caused by the coronavirus epidemic and the new wage code, any move to more
disposable income this year would be welcome. Some estimates suggest that the
share of household wages may decline from 1st April 2021 will take effect.
According to the new pay rules under the code mandate, the allowance components cannot exceed 50 per cent of the total salary, which means 50 per cent of the basic salary. This means companies will have to increase the private pay component, which will provide gratuity to provident funds and increase employee contributions. This will help increase their retirement corps, but it will also reduce their household wages.
Download Automated Income Tax Arrears Relief Calculator U/s89(1) with Form 10 E from the F.Y.2000-01 to the F.Y.2021-22 (Updated Version)
