The Covid-hit country India and it’s union budget may get some new updates following the 2021 year; which could be somewhat beneficial for middle class people, tax payers and job seekers. India’s Finance Minister Nirmala Sitharaman is set to announce the annual budget on February 1, 2021 – paperless for the first time in the history of India.
Among several expectations ranging from healthcare to insurance to home loans, it is personal taxation aspects that will cast a major impact in the lives of the middle class people. The 2021 budget is set to be announced on Feb 1 by Nirmala Sitharaman.
Tax Deduction and Exemption
There has been a widespread demand that the FM should raise income tax slabs at least Rs 3 lakh so that the tax burden for those in the Rs 5 lakh p.a income group could have a little extra at hand. As per media reports, FM Sitharaman may announce something on this track.
FM Sitharaman had announced that the new personal income tax regime for those do not go for any deductions and exemptions, the rate will be 10 percent for those earning between Rs 5 lakh-7.5 lakh per annum against the present rate of 20 percent.
Those earning between Rs 7.5 lakh to 10 lakh per year will be able to pay tax at a rate of 15 per cent against the current 20 per cent subject to the condition that they do not opt for any deductions and exemptions under the various sections of Income Tax Act. The new rate for those with between Rs 10 to 12.5 lakh will be 20 per cent against 30 per cent at present while those earning between Rs 12.5 lakh to 15 lakh will pay tax at 25 per cent against 30 per cent.
Bringing Jobs in the market
Another top priority for the Modi government would be to bring back jobs in the market, after a year where thousands lost jobs across the country as companies tried to cut down costs. The boost in infrastructure and construction could also lead to the growth in jobs.
Healthcare Facilities on priority
With the COVID-19 pandemic having shown the need for better healthcare infrastructure and facilities in the country, it is likely that the sector will see renewed focus from Sitharaman. “Combined with the start of the 15th Finance Commission period, we may see a jump in healthcare spending,” said the Credit Suisse report.