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Tuesday, March 02, 2021

Budget 2021 Income Tax Slabs and Rates highlights: Senior citizens, NRIs get tax exemptions

"In the 75th year of Independence of our country, we shall reduce compliance burden on senior citizens. For senior citizens who only have pension and interest income, I propose exemption of filing of income tax returns," Sitharaman said.

By: Express Web Desk | New Delhi |
Updated: February 2, 2021 11:31:22 am
income tax, income tax slab, income tax slab rate 2021, income tax slab changes, budget 2021 income tax changes, budget 2021 expectation for income tax, budget 2021 22, budget 2021 india, budget income tax expectations, budget 2021 income tax rate changes, income tax rate 2021, income tax rate 2021-20, income tax rate 2021 for fy 2021-22, income tax slab rate 2021Budget 2021 Income Tax Slabs Live: Sitharaman also announced that Tax audit limit has been increased from Rs 5 crore to Rs 10 crore.

Presenting the Union Budget 2021 in Parliament, Union Finance Minister Nirmala Sitharaman said that the senior citizens who only have pension and interest income are exempted from filing the tax returns. “In the 75th year of Independence of our country, we shall reduce compliance burden on senior citizens. For senior citizens who only have pension and interest income, I propose exemption of filing of income tax returns,” she said.

The Finance Minister also announced that the NRIs will be spared from double taxation. “New rules to be notified, she said. Sitharaman also announced that Tax audit limit has been increased from Rs 5 crore to Rs 10 crore.

Also, Sitharaman said that the reassessment will be opened for 10 years only if evidence of concealment of income of Rs 50 lakh or more in a year will be found. “In serious tax evasion cases, only where there is evidence of concealment of income of Rs 50 lakh or more in a year, can reassessment be opened for 10 years. For others, assessment reopening only for 3 years.”

In 2020-21, a significant cut in the tax rates for the salaried class was announced, which, Sitharaman said, was to simplify the tax regime which was riddled with multiple exemptions and needed taxpayers to take the help of the professionals. Last year’s announcement ushered in a new tax regime where the taxpayer got the option of taking new rates without exemptions or sticking to old rates with exemptions.

As per the tax rates last year, income under Rs 2.5 per annum remained untaxable as it was earlier. Also, a tax of 5% was announced on income between Rs 2.5 to Rs 5 lakh and 10% for those earning between Rs 5 – Rs 7.5 lakh per annum, which were earlier 20 per cent. The Finance Minister had also proposed 15 per cent tax for those earning between Rs 7.5 lakh to Rs 10 lakh per annum and had said that those earning between Rs 10 lakh to Rs 12.5 lakh per annum will now have to pay 20 per cent tax. Earlier it was 30 per cent. The new tax rate applicable to those earning in the range of Rs 12.5 lakh per annum to Rs 15 lakh per annum was set at 25 per cent and 30 per cent tax was announced for salaries above Rs 15 lakh per annum.

Live Blog

No ITR for pensioners over 75; NRIs to be spared from double taxation; what are the new slabs; what were the tax rates last year. Follow highlights

13:02 (IST)01 Feb 2021
Budget 2021: What FM said

# FM proposes tax exemption for aircraft leasing cos; tax exemption for notified affordable housing for migrant workers

# Rs 1.5 lakh deduction on payment of interest for affordable housing extended by 1 yr:

# Record GST collections in last few months; govt to take every possible measure to reduce anomalies

# Tax holiday for startups extended by 1 yr; exemption on capital gains on investment in startups extended by 1 yr

12:58 (IST)01 Feb 2021
Today's Income Tax announcement in short

In significant changes to the taxation process, Sitharaman announced the scrapping of income tax for senior citizens under certain conditions, new rules for removal of double taxation for NRIs, and a reduction in the time period of tax assessments among other measures. Startups will get an extension in their tax holiday for an additional year. Sitharaman also announced that the advance tax liability on dividend income shall arise after declaration of payment of dividend. At the conclusion of her speech, Sensex was at 47451.62, up 1165.85 points. 

12:55 (IST)01 Feb 2021
NRIs allowed to operate One Person Companies in India

# Late deposit of employee's contribution to PF by employers will not be allowed as deduction to employer

# Tax holiday for start-ups increased by one more year - till March 31, 2022

# NRIs allowed to operate One Person Companies or OPCs in India

12:47 (IST)01 Feb 2021
What FM Sitharaman said on taxation sector
Finanace Minister Nirmala Sitharaman presenting the Union Budget 2021 on Monday.

# Finance Minister Sitharaman proposes policies to make it easy for foreign investors to invest in India's infrastructure projects.

# Propose to make dividend payments to REIT (estate investment trusts) and Invit's (Infrastructure investment trusts) exempt from TDS.

# To further ease filing of IT returns, details of capital gains and interest from banks, post offices, etc will be pre-filled

12:46 (IST)01 Feb 2021
Government removes threshold limits of paid-up share capital of Rs 50 lakh

Government removes threshold limits of paid-up share capital of Rs 50 lakh and average annual turnover of Rs 2 crore over the past three financial years. Government has also eased requirements of residency for a person setting up a One person company from 182 days to 128 days in India.

Impact: the move is aimed at encouraging businesses to register as One-person companies as they will not be forced to convert to private or public companies which have a greater compliance burden. Lower residency requirement will also encourage bor Resident and Non resident Indians to set up One Person Companies, writes Sandeep Singh

12:45 (IST)01 Feb 2021
Government to increase maximum threshold paid-up capital of small companies

Government to increase maximum threshold paid-up capital of small companies from Rs 50 lakh to Rs 2 crore and increase the threshold of maximum turnover from Rs 2 crore to Rs 20 crore.

Impact: More than 2 lakh additional companies to come under the definition of small companies which have a lower compliance burden including lower penalties for violations and lower filing requirements, writes Sandeep Singh

12:40 (IST)01 Feb 2021
NRIs to be spared from double taxation: FM Sitharaman

NRIs to be spared from double taxation. New rules to be notified, says FM. She also announces that Tax audit limit has been increased from Rs 5 crore to Rs 10 crore.

12:39 (IST)01 Feb 2021
Reassessment be opened for 10 years only if evidence of concealment of income of Rs 50 lakh or more in a year

In serious tax evasion cases, only where there is evidence of concealment of income of Rs 50 lakh or more in a year, can reassessment be opened for 10 years. For others, assessmennt reopening only for 3 years

12:32 (IST)01 Feb 2021
Exemption from filing tax for elderly

In the 75th year of Independence of our country, we shall reduce compliance burden on senior citizens. For senior citizens who only have pension and interest income, I propose exemption of filing of income tax returns: FM

12:32 (IST)01 Feb 2021
Sitharaman is now announcing tax rates

Finance Minister Nirmala Sitharaman is now announcing tax rates for the upcoming Fiscal. Stay tuned to our live blog.

11:29 (IST)01 Feb 2021
Income Tax rates for 2020-2021

#1. 5% tax for income between Rs 2.5 and Rs 5 lakh#2. 10% tax for income between Rs 5 and Rs 7.5 lakh#3. 15% tax for income between 7.5 lakh and 10 lakh#4. 20% tax for income between 10 lakh and 12.5 lakh#5. 25% tax for income between 12.5 lakh and 15 lakh#6. 30% tax for income above 15 lakh#7. No income tax for those with taxable income below Rs 2.5 lakh

11:15 (IST)01 Feb 2021
What are the current tax rates

As per the tax rates last year, income under Rs 2.5 per annum remained untaxable as it was earlier. Also, a tax of 5% was announced on income between Rs 2.5 to Rs 5 lakh and 10% for those earning between Rs 5 – Rs 7.5 lakh per annum, which were earlier 20 per cent. The Finance Minister had also proposed 15 per cent tax for those earning between Rs 7.5 lakh to Rs 10 lakh per annum and had said that those earning between Rs 10 lakh to Rs 12.5 lakh per annum will now have to pay 20 per cent tax. Earlier it was 30 per cent. The new tax rate applicable to those earning in the range of Rs 12.5 lakh per annum to Rs 15 lakh per annum was set at 25 per cent and 30 per cent tax was announced for salaries above Rs 15 lakh per annum.

10:39 (IST)01 Feb 2021
Sensex rises nearly 500 points in early trade, Nifty above 13,700-mark

Investors across the Indian stock market would be reacting to the proposals of the Union Budget 2021 which will be presented by Finance Minister Nirmala Sitharaman starting at 11 am.

 

The benchmark equity indices opened on a positive note on Monday ahead of the Union Budget 2021.

During the early trade, the S&P BSE Sensex rose nearly 500 points to an intraday high of 46,777.56, while the Nifty 50 climbed as much as 139.2 points to 13,773.80. At 9:27 am, the Sensex was trading at 46,690.77, up 405.00 points (0.87 per cent), while the Nifty was at 13,736.65, up 102.05 points (0.75 per cent). Follow Budget 2021 Market LIVE blog year

10:33 (IST)01 Feb 2021
Finance Ministry team meets President Kovind before presenting Budget 2021

The Finance Ministry team meets President Ram Nath Kovind before presenting the Budget.

10:31 (IST)01 Feb 2021
FM Nirmala Sitharamana arrives at Parliament; to present Budget shortly

Finance Minister Nirmala Sitharaman arrives at the Ministry of Finance.

10:08 (IST)01 Feb 2021
In 2020-21, a significant cut in tax rates for salaried class was announced

In 2020-21, a significant cut in the tax rates for the salaried class was announced, which, Sitharaman said, was to simplify the tax regime which was riddled with multiple exemptions and needed taxpayers to take the help of the professionals. Last year’s announcement ushered in a new tax regime where the taxpayer got the option of taking new rates without exemptions or sticking to old rates with exemptions.

10:08 (IST)01 Feb 2021
Hello and welcome to our Income Tax rates LIVE blog

Hello and welcome to our Income Tax Slabs and Rates for FY 2021-22 LIVE blog. During her Budget speech, Finance Minister Nirmala Sitharaman is also expected to announce some changes in the tax rates. Follow to get latest updates here

Last year, it was announced that the new rates will apply to only those individuals who forgo certain exemptions and deductions.

New income tax rates for year 2021-22 

#1. 5% tax for income between Rs 2.5 and Rs 5 lakh

#2. 10% tax for income between Rs 5 and Rs 7.5 lakh

#3. 15% tax for income between 7.5 lakh and 10 lakh

#4. 20% tax for income between 10 lakh and 12.5 lakh

#5. 25% tax for income between 12.5 lakh and 15 lakh

#6. 30% tax for income above 15 lakh

#7. No income tax for those with taxable income below Rs 2.5 lakh