Due to Corona infection, the economy has been severely affected. The government’s income from direct and these direct taxes has decreased. In such a situation, will it be possible for the government to give tax exemption.
The common tax-payers are most keen on the budget. When the budget of every financial year before it is presented, the demand for income tax exemption increases. Industry starts lobbying to get tax exemption and convenience.
At the same time, the pressure of the middle class taxpayers to give tax exemption to the government starts increasing. In the budget of 2021-22, the demand for increase and slab of income tax would have intensified.
This time again this demand has increased. But the question is whether the government will increase the tax slab this time or will it give tax exemption.
How much hope for a rebound in the extreme economy from Corona?
Due to Corona infection, the economy has been severely affected. The government’s income from direct and these direct taxes has decreased. In such a situation, will it be possible for the government to give tax exemption. However, there are reports that the Finance Ministry is considering a demand to increase the exemption limit under section 80C.
Discount can be increased under 80C
The government may increase the exemption provided under section 80C from Rs 1.5 lakh to Rs 2 lakh in the budget presented on 1 February. The government can also increase the tax deduction limit on the payment of both interest and principal money of the home loan in the budget.
According to the current tax slab, there is five per cent on income tax between Rs 2.5 to 5 lakh, 20 per cent for Rs 5 to 10 lakh and 30 per cent tax on those with income above Rs 10 lakh.
Nidhi Malviya is fun loving girl. She writes at NoobFeeds about various topics related to Finance, Technology, Business etc.