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HomeBudget -2021Budget 2021: Senior citizens expect to get tax relief in budget, this...

Budget 2021: Senior citizens expect to get tax relief in budget, this is demand

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Budget 2021: There is also a demand to make senior citizens’ annuity income tax free, cess, surcharge and not to impose new tax. Currently, they have to pay tax on it.

Budget 2021: Only a few days are left in the budget. Everyone has high hopes from Finance Minister Nirmala Sitharaman. In such a situation, the senior citizen is also expected to get relief in the budget. The demand of senior citizens in the budget (Budget 2021 expectations for senior citizens) is that the annuity income should be made tax free. Currently, they have to pay tax on it. Let us try to understand here what kind of demand is there for senior citizens in the budget and how much is there.




Senior citizens get relief

Annuity income should be tax free At
present, tax is levied on annuity income
, senior citizens get relief from rising medical expenses,
senior citizens get tax relief on annuity income
, pension like schemes like NPS and PMVVY are
interest taxable on senior savings scheme of
senior citizens To arrange for tax free annuity

Senior Citizen’s tax liability

For 60 to 80 year olds

Bracket tax rate
NIL Rs 3 lakh
to Rs 3-5 lakh 5%
5 Lak- Rs 10 lakh 20%
Rs more than 10 million 30%

Senior Citizen’s tax liability

When you are 80 years and older

Slab tax rate
up to Rs 5 lakhs NIL
5-10 lakhs Rs 20%
10 lakhs Rs 30%

Expectations from budget

Tax-free pension scheme may
come tax-free pension scheme in the budget is
a tax-free pension scheme would be very beneficial
government can continue the cut-off limit on pension
cut-off limit of tax-free pensions gift possible

No new tax / surcharge

Taxpayers have a lot of expectations from this budget
, new tax may not be levied as surcharge;
New tax can reduce take-home income
; Expect more money to increase investment in hand

Relief on capital gains tax

Corona’s period saw a lot of fluctuation in equity
Corona’s lesson- Equity for long term only. Remaining in equity for
long term beneficial
Long term capital gains tax to be changed.
LTCG is not taxed as before

Existing system

Tax on Long Term Gain in Equity Investment:
10% Tax on Gain over 1 Lakh
can get Indexation Benefit with 10% Tax in Budget

DLSS to be announced

To save tax from equity investment, ELSS
demands better mutual fund industry – DLSS should be announced
DLSS – Debt Linked Savings Scheme
Tax can be saved by investing in DLSS.

Also Read: This major change has happened since January 1, the new condition is applicable on transactions above 50000

Pravesh Maurya
Pravesh Maurya
Pravesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ businessleaguein@gmail.com
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