Income Tax latest news: know what salary class got in the budget, income tax returns will have to be filled with this slab

Income Tax latest news: Finance Minister Nirmala Sitharaman has presented Budget 2021.

Income Tax latest news: In Budget 2021 (Union Budget 2021), the salary class did not take anything. Finance Minister Nirmala Sitharaman did not make any announcement for salary class in the budget. That is, income tax slab rates will remain the same. Although Agri Infa Development Cess (Agriculture Infrastructure and Development Cess) will be imposed.

In the last year’s budget, the Finance Ministry had given two tax options for the Salary Class, which are applicable from the financial year 2020-21. You can choose any option while filling Taxpayer Income Tax Return. That is, new tax slab or old. It will also be applicable in 2021-22. In the new tax slab, all exemptions have been abolished. It does not include any tax saving scheme. If the tax payer opts for the old tax slab, then they will continue to get the benefit of all types of tax rebates.

These cuts out in the new tax slab

Investment in 80C
House Rent Allowance (HRA)
Travel Allowance (TA)
Health Insurance Premium
Standard deduction
Saving Bank Interest Interest on Saving
Loan Education Education Interest
Investment in National Savings Scheme (NSC)
Bring Home
Entertainment Loan Allowance under Section 16 of Home Loan Interest

Benefits of new tax slab

Cash payment in lieu of PL on retirement from VRS Interest received from
Death Maturity Amount
GPF Amount from
Sukanya Samriddhi Account
Scholarship
Gratuity
Tax Rebate on 1.5 lac investment
Income from Farming
Income

Also Read: PF Par lagega Tax: Provident fund will have to be deducted more, government has imposed cap in budget

Tax Slab

Income up to Rs 2.5 lakh in the current tax slab will remain tax free. Income tax will be applicable at the rate of 5 percent on income from two and a half lakh to 5 lakh rupees, but after exemption, income up to 5 lakh rupees will not be taxed. The new income tax system will be optional, taxpayers have the option to choose from the old system or the new system. That is, this change is with the conditions. For this, you have to leave the benefit of rebate on investment. If you take an investment discount, then the old tax rate will be valid.

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