Income tax rate 2021-2022; New rules for Senior Citizen ITR, NRIs, PF, ULIP: Finance Minister Nirmala Sitharaman on February 1 announced several proposals for the benefit of depositors, investors and taxpayers. Sitharaman said the tax system should impose a minimum burden on taxpayers. The finance minister surprised taxpayers by not announcing any changes to the income tax slab rate. She also did not announce the proposal to introduce the high-profile Covid cess. An RTI filing exemption has been granted to persons aged 75 or over. The budget also had good news for retired NRIs. FM Sitharman proposed to exempt the payment of dividends to REIT / InvIT from TDS.
The Minister of Finance proposed to provide GST relief by reducing the reverse GST structures. For this, the government will take the necessary measures, she said. The Minister of Finance has proposed that seniors (over 75) who only earn retirement income and interest on deposits should not be required to file an income tax return. The government has proposed to allow the ULIP tax exemption upon maturity with an annual premium of up to Rs 2.5 lakh. EPF interest income exceeding Rs 2.5 lakh will be taxable. Interest income from the PF contribution above Rs 2.5 lakh / year will now be taxed, in accordance with Sitharaman’s budget proposals.
Sitharaman had earlier promised to present a âbudget like no otherâ. We hoped that this year, it will be a budget like no other for taxpayers as well. The finance minister was to bring relief to the common man affected by the pandemic and focus more on economic recovery. Experts believed that the 2021 budget could be the starting point to pick up the pieces after the economic destruction caused by the COVID-19 pandemic.
READ the full 2021 Union budget updates here
Read live updates on the 2021 budget proposals on income tax, tax slab and tax rates below. Also read the budget speech updates in Hindi here. For the income tax calculation, visit the tax calculator page of financialexpress.com. FE’s income tax calculator for fiscal year 2021-22 (YY 2022-23) is now live.