Personal Taxes

How the earnings tax has been fully overhauled within the final 7 years

Union budget 2021: Experts believe that the government may not include income tax relief in the upcoming budget due to the budget deficit.

Publish Date: Fri, Jan 29, 2021 04:35 PM IS

New Delhi | Jagran Business Desk: Amid signs of an economic recovery from the effects of the COVID-19 pandemic, Finance Minister Nirmala Sitharaman will present the Union’s 2021 budget on Monday. While the government may announce special programs to revitalize the pandemic-hit economy, experts believe it is unlikely to include income tax breaks in the upcoming budget.

In 2020 the center introduced new tax breaks that offer massive relief for white-collar workers and the middle class. However, experts believe that the government may not include income tax relief in the 2021 Union budget due to the budget deficit.

Since Prime Minister Narendra Modi came to power, the government has made a number of changes to the tax plans that are providing great relief to compatriots. While Sitharaman is presenting the Union budget for 2021, the central government has made the following tax changes since 2014:

2020:

In 2020, the center revised the income tax rates and tax rates to provide relief for citizens. As part of the new structure, the Treasury Department announced that people earning less than 5 lakh will not have to pay tax, while those earning 5 to 7.5 lakh will have to pay 10 percent tax.

2019:

The center proposed to impose a TDS of 2 percent on cash withdrawals of more than Rs 1 billion a year. It is also said that companies with annual sales over 400 rupees are below the 25 percent tax bracket.

2018:

The Ministry of Finance had raised the tax in the 2018 Union budget to 4 percent. It had also increased the bank or postal deposit interest exemption to Rs 50,000, while the deduction limit for health insurance premium set under Section 80D of the Income Tax Act was increased to Rs 50,000.

2017:

In 2017, the central government lowered the income tax rate on income from 2.5 lakh to 5 lakh to 5 percent. The center had also reduced the Section 87A rebate to Rs 2,500 while abolishing the withdrawal of investments in the Rajiv Gandhi Equity Saving Scheme.

2016:

The Treasury had increased the surcharge for total income of more than 1 billion rupees to 15 percent. It had also increased the tax break for individuals to Rs 5,000 for those with an income of up to Rs 5 lakh.

2015:

In 2015 the center raised the income surcharge above Rs 1 crore to 12 percent and abolished the wealth tax.

2014:

The Treasury Department raised the income tax exemption limit by Rs 50,000 to Rs 2.5 lakh in 2014, while the loan interest deduction limit was raised to Rs 2 lakh.

Written by:
Aalok Sensharma

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