Video Editor: Rahul Sanpui
Finance Minister Nirmala Sitharaman, while announcing the Union Budget 2021, did not mention any change in income tax slabs for the upcoming financial year, but proposed tax benefits for senior citizens above the age of 75.
Last year, Sitharaman had introduced a new tax regime under which, there is zero tax for income up to Rs 2.5 lakh; 5 percent for income between Rs 2.5 lakh and Rs 5 lakh; 10 percent for income between Rs 5 lakh and Rs 7.5 lakh; 15 percent for income between Rs 7.5 lakh and Rs 10 lakh; 20 percent for income between Rs 10 lakh and Rs 12.5 lakh; 25 percent for income between Rs 12.5 lakh and Rs 15 lakh; 30 percent for income above Rs 15 lakh.
You can follow the live updates on the Budget here.
Here are the highlights of tax announcements from Budget 2021:
- Senior citizens above 75 years of age to be exempted from filing income tax returns
- To reduce time limit for reopening of tax records to three years from six years
- To set up faceless dispute resolution committee for individual tax payers
- To make Income Tax Appellate Tribunal faceless
- A proposal to constitute dispute resolution committee for small taxpayers
- Anyone with taxable income of up to Rs 50 lakh, disputed income of up to Rs 10 lakh eligible to approach dispute resolution committee
- To extend eligibility of provision for additional deduction of Rs 1.5 lakh for loans taken to purchase affordable housing by one more year
- To ensure employees’ contribution of retirement schemes is done on time, late payment of such contributions by employers will not be allowed for tax deduction