Income Tax Rate Slab Change Budget 2021 Live Updates: Investing above Rs 2.5 lakh/year in ULIP becomes taxable

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© Provided by The Financial Express No Change in Income Tax Slab, Budget 2021 Income Tax Slabs and Rates Union Budget 2021 Income Tax Slabs Live Updates here

Income Tax Slab 2021-22 Live: No change in Income Tax Slab, Income Tax Exemptions to Senior Citizen and NRIs Live Streaming: Finance Minister Nirmala Sitharaman has announced several proposals for the benefit of depositors, investors and taxpayers. Sitharaman said that the tax system should put a minimum burden on the taxpayers. The Finance minister surprised taxpayers by not announcing any change in income tax slab rates. Some relief in filing ITR for senior citizens above 75 and NRIs were, however, announced. The finance minister also proposed to provide GST relief by reducing inverted GST structures. For this, the Government will take the necessary steps.

The Finance Minister proposed that senior citizens (above 75) earning only pension and interest income from deposits would not be required to file Income Tax Return. The government has proposed to allow tax exemption on maturity of ULIP having annual premium up to Rs 2.5 lakh. EPF interest income above Rs 2.5 lakh will be taxable.

Sitharaman had earlier promised to present a “budget like no other”. It was hoped that this year it will be a Budget like no other for taxpayers as well. The finance minister was expected to provide relief to the pandemic-hit common man as well as focus more on driving economic recovery. Experts believed that Budget 2021 could be the starting point for picking up the pieces after the economic destruction caused by COVID-19 pandemic. The salaried individuals were hoping that the government would broaden some tax advantages through Budget. In the run-up to the Budget presentation, several experts and professional bodies like ICAI had recommended the government to increase the deduction limit under Section 80C of the Income Tax Act. Some even suggested the government to allow higher deduction under Section 80D and increase the deposit limit in PPF to Rs 3 lakh. 

READ Full Union Budget 2021 Live Updates Here

A number of experts believed that the government might introduce a covid cess to be imposed on HNIs. However, opinions were divided on this issue. 

Read below for Live Updates on Budget 2021 proposals on Income Tax, Tax slab and Tax Rates. Also read Budget Speech Live Updates in Hindi Here

For Income Tax calculation, visit the tax calculator page of financialexpress.com (Note – FE’s Income Tax Calculator will be updated by tomorrow as per the announcements made by FM Nirmala Sitharaman’s Budget Speech.)