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.
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