Budget 2021 to be announced on February 1: Here's what could be in store for the Pandemic-hit middle class New Delhi: The Pa...
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.
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.
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