UNION BUDGET 2021

BUDGET 2021- No change in income tax slab, number of people filing income tax returns in the country

New Delhi:- Finance Minister Nirmala Sitharaman announced no change in the income tax slab in the Budget-2021 speech on Monday. He said that the number of people who filed income tax returns in 2020 increased to 6.84 crore, from 3.31 crore in 2014. The Finance Minister in his budget speech last year announced the introduction of a new tax regime in the country. There is no tax rebate benefit in the new tax regime.

The government has given the taxpayer the right to choose the option to pay tax under the new tax regime or old tax regime. Personal tax payers are not being given any benefit of all other tax exemptions including Section 80C, 80D, LTC, HAA under the new tax regime. The Finance Minister had proposed to levy 10 percent tax on income ranging from Rs 5 lakh to Rs 7.5 lakh annually. Earlier, tax was payable at the rate of 20 percent. 15 percent tax is payable under the new tax regime on income ranging from 7.5 lakh to 10 lakh rupees annually.

20 percent tax has to be paid on annual income ranging from Rs 10 lakh to Rs 12.5 lakh. Earlier, this income used to be 30 percent tax. Those with annual income ranging from Rs 12.5 lakh to Rs 15 lakh have to pay 25 percent tax. Those with an annual income of more than 15 lakh rupees are getting tax at the current rate of 30 percent.

A person who earns Rs. 15 lakhs in a year and does not want to avail any tax exemption, will have to pay only tax of Rs. 1.95 lakhs, which was earlier Rs. 2.73 lakhs. In this way, he is getting 78 thousand rupees in a year. Currently, income up to Rs 2.5 lakh is tax free. The rate of tax is 5% on annual income of 2.5 lakh to 5 lakh rupees. The tax rate in this slab becomes zero with deductions and exemptions.