Personal Taxes

Funds 2021: No change in revenue tax for fiscal yr 2021-22

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Taxes

oi-Roshni Agarwal

| Updated: Monday, February 1, 2021, 1:26 p.m. [IST]

In her budget speech, Sitharaman said the tax system should put a minimal burden on taxpayers. The tax rates for the 2021-22 financial year have not been revised. Former tax experts and professional associations recommended that the government increase the 80 ° C limit.

Also, no Covid 19 process was introduced, as feared by the markets, to cover the costs of the Covid 19 vaccination campaign. Therefore, the existing control board and tax rate would be continued for the new and old control systems.

In the previous budget, Finance Minister Sitharaman developed a new tax system that allows taxpayers to pay taxes under the new structure at lower rates but waive any deductions or pay taxes in accordance with applicable tax laws and claim available deductions and exemptions do.

Budget 2021: No change in income tax for fiscal year 2021-22

Budget 2021: No change in income tax for fiscal year 2021-22

Income tax plates for the 2021-22 fiscal year according to the new tax system introduced last year

Income plate tax rate
Income up to Rs. 2.5 lakh Tax exempt
Rs. 2.5 lakh-Rs. 5 lakh 5%
Rs. 5 lakh-Rs. 7.5 lakh 10%
Rs. 7.5 lakh-Rs. 10 lakh 15%
Rs. 10 lakh-Rs. 12.5 lakh 20%
Rs. 12.5 lakh-Rs. 15 lakh 25%
Rs. 15 lakh and above 30%

The new tax system did not allow for Section 80C deductions. Other exemptions such as home loans, insurance and standard deductions are also not offered under the new regulation.

Control plates according to the old control system:

Income plate tax rate
Income up to Rs. 2.5 lakh zero
Rs. 2.5 lakh-Rs. 5 lakh 5% (discount under Section 87A of Rs. 12500)
Rs. 5 lakh-Rs. 10 lakh 20%
Rs. 10 lakh and above 30%

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