Thursday, August 18, 2022
  • About
  • Advertise
  • Careers
Scoftware Magazine
  • Home
  • Politics
  • Business
  • Culture
  • Opinion
  • Lifestyle
  • Entertainment
  • Login
No Result
View All Result
Scoftware Magazine
Home Business

Union Budget 2021: Taxpayers hope for lower income tax, deductions on medical treatment, incentives for WFH

Jaleel M. by Jaleel M.
January 29, 2021
in Business
0
Union Budget 2021: Taxpayers hope for lower income tax, deductions on medical treatment, incentives for WFH
0
SHARES
12
VIEWS
Share on FacebookShare on Twitter


It is worthwhile to note that the major impact of the pandemic is not only on the general public or different sectors but also on the government

Related posts

10 grams of 24-carat stands at Rs 50,790; silver at Rs 61,200 per kilogram  

10 grams of 24-carat stands at Rs 50,790; silver at Rs 61,200 per kilogram  

May 18, 2022
How will you get tax benefits under new I-T rules for charitable organisations? Read on to find out

How will you get tax benefits under new I-T rules for charitable organisations? Read on to find out

May 17, 2022

Union Budget 2021: Taxpayers hope for lower income tax, deductions on medical treatment, incentives for WFH

Government should look for ways to give tax relief in work from home scenario. Reuters

The pandemic shook the economic base of our country escalating the normal expectations of the past year. The hardest hit of the pandemic is the lower class and lower-middle-class. Therefore, all hopes in the eyes of a common taxpayer are on the forthcoming Budget. Post-pandemic, the GDP is slowing down, inflation, recession, among others is impacting the economy and there is a strong need for a positive Budget.

It is worthwhile to note that the major impact of the pandemic is not only on the general public or different sectors but also on the government–funds released in the lockdown period to serve the nation have impacted the Treasury, and lesser earnings in terms of tax collection have created a higher unexpected deficit.

What can be expected from Budget 2021

Marginal relief concept is the most expected in personal taxes/direct taxes so as to be able to handle anomaly of a higher tax on lower income. As of now, if your net taxable income is up to Rs 50,0000 then your tax liability is nil and in case you earned Rs 100 more i.e. Rs 50,0100, you will end up paying tax of Rs 12,520, meaning thereby Rs 12,520 tax on Rs 100 incremental Income. Earlier there was the concept of marginal relief restricting tax amount maximum up to incremental income only. Hope the government will make this simple for taxpayers.

Slab rates to remain constant, unchanged basic exemption limit. This year there is an expectation of at least an increase in basic exemption limits with revised tax rates overall benefitting the local individual. There is a lower expectation of a reduction in the tax rates, as a collection of revenues to the government is equally important in today’s situation.

A deduction on medical treatment and a full process of COVID-19 vaccine drive. There are expectations of 100 percent deduction of expenditure.

Standard deduction to salary class is expected to increase from Rs 50,000 to Rs 75,000 or more. Reducing inflation needs liquidity and to encourage investments from the general public, such investment deductions should be introduced in various forms under Chapter VI A or the introduction of any other section. It is a long-awaited expectation to increase the limit of Section 80C to Rs 25,0000 in place of the existing Rs 15,0000.

Work from home is the new trend that has increased the expenditure of employees; hence providing incentives for the same to employees will be a great idea. Housing and real estate sectors are hard-hit this pandemic period and it is expected that standard deduction u/s 24 would be increased from 30 percent to 40 percent.

Faceless assessment and appeals are a reality now and the government should try to ensure that with new rules, regulations, and SOPs an honest taxpayer is not left at the mercy of a faceless tax officer who for the sake of adopting new assessment process, willingly or unwillingly, increases the unnecessary paper and documentation burden of the assessee. This will defeat the purpose of honouring the honest.

A new cess in the form of Covid Cess or health cess is also the talk of the town.

The writer, a qualified CPA (Ireland) and Fellow Chartered Accountant (India), is founder and chairman, HostBooks Ltd

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.



Source link

Previous Post

Union Budget 2021: Expect govt to unveil plans to revive economic segments impacted by pandemic

Next Post

Union Budget 2021: Centre should focus on growth, not arresting fiscal deficit, says report

Next Post
Union Budget 2021: Centre should focus on growth, not arresting fiscal deficit, says report

Union Budget 2021: Centre should focus on growth, not arresting fiscal deficit, says report

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED NEWS

West Indies Approve “Bio-Secure” Test Tour Of England

West Indies Approve “Bio-Secure” Test Tour Of England

2 years ago
Lili Reinhart Apologizes For Posing Topless in Breonna Taylor Call For Justice

Lili Reinhart Apologizes For Posing Topless in Breonna Taylor Call For Justice

2 years ago
Sensex gains 874 points, Nifty ends at 17,392; check top winners and losers here

Sensex gains 874 points, Nifty ends at 17,392; check top winners and losers here

4 months ago
Top EU diplomat slams Floyd’s death as ‘abuse of power’, United States News & Top Stories

Top EU diplomat slams Floyd’s death as ‘abuse of power’, United States News & Top Stories

2 years ago

FOLLOW US

  • 116 Followers
  • 29.5k Followers
  • 174k Subscribers

BROWSE BY CATEGORIES

  • Business
  • Culture
  • Entertainment
  • Lifestyle
  • Music
  • National
  • News
  • Opinion
  • Politics
  • Sports
  • Tech
  • Travel
  • World News

BROWSE BY TOPICS

2018 League Balinese Culture Bali United Budget Travel Champions League Chopper Bike Doctor Terawan Istana Negara Market Stories National Exam Visit Bali

POPULAR NEWS

  • Charles B and Kamil Ghaouti Collaborate on Groovy New Track “You’re Not Mine,” featuring LauraBrown. Out on Protocol Recordings

    Charles B and Kamil Ghaouti Collaborate on Groovy New Track “You’re Not Mine,” featuring LauraBrown. Out on Protocol Recordings

    0 shares
    Share 0 Tweet 0
  • Salted vs. Unsalted Pistachios

    0 shares
    Share 0 Tweet 0
  • Kris Jenner Spills Details About Her Sex Life With Corey Gamble: Watch

    0 shares
    Share 0 Tweet 0
  • Sam Heughan & Graham McTavish Are Men in Kilts for Travel Show

    0 shares
    Share 0 Tweet 0
  • Doja Cat Responds to Accusations of Racism

    0 shares
    Share 0 Tweet 0
  • About
  • Advertise
  • Careers

© 2020 Scoftware.com

No Result
View All Result
  • Home
  • Politics
  • Business
  • Culture
  • National
  • Sports
  • Lifestyle
  • Travel
  • Opinion

© 2020 Scoftware.com

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Terms and Conditions - Privacy Policy