02
Feb '21
4
Replies
- No change in Individual Tax Slabs. An individual taxpayer may select their tax structure between the old regime and the new regime, condition apply.
- If used new regime, the tax payer has to forego some exemptions and deductions, which may change later.
- Details of Shares profit / loss, interest from bank and dividend pay-out will come pre-filled in ITR form.
- Following are the new regime tax slabs:
INDIVIDUAL AGE LESS THAN 60 YEARS | 2021-22 |
Rate | Slabs |
EXEMPTION LIMIT | 2,50,000 |
5.00% | 2,50,001 – 5,00,000 |
10.00% | 5,00,001 – 7,50,000 |
15.00% | 7,50,000 – 10,00,000 |
20.00% | 10,00,000 – 12,50,000 |
25.00% | 12,50,000 – 15,00,000 |
30.00% | Above 15,00,000 |
INDIVIDUAL AGE OVER 60 YEARS(SR CTZN) | 2021-22 |
RATE | Slabs |
EXEMPTION LIMIT | 3,00,000 |
5.00% | 3,00,001 – 500000 |
10.00% | 5,00,001 – 7,50,000 |
15.00% | 7,50,000 – 10,00,000 |
20.00% | 10,00,000 – 12,50,000 |
25.00% | 12,50,000 – 15,00,000 |
30.00% | Above 15,00,000 |
INDIVIDUAL AGE OVER 80 YEARS | 2021-22 |
RATE | Slabs |
EXEMPTION LIMIT | 5,00,000 |
5.00% | 0 |
10.00% | 5,00,001 – 7,50,000 |
15.00% | 7,50,000 – 10,00,000 |
20.00% | 10,00,000 – 12,50,000 |
25.00% | 12,50,000 – 15,00,000 |
30.00% | Above 15,00,000 |
OTHER IMPORTANT POINTS TO NOTE:
- Major Focus on Health, Infra, Debt Financing
- Focus on Primary, Secondary and Tertiary Health Care allocating Rs. 64,180 cr for Aatmanirbhar Health Yojana. FM says 2 Covid-19 vaccines available and 2 more to be expected soon allocating Rs. 35,000 cr for vaccines.
- FDI increase for foreign partners from 49% to 74% in Insurance Sector with safeguards. A major percentage of directors being Indian Residents.
- Rs. 20,000 cr to the recapitalization of Government Banks
- No limit of turnover and paid-up capital for One Person Company. Allows an NRI to open OPC by reducing the days spent in India from 182 days to 120 days. This will allow non-resident Indians to incorporate one-person companies in India
- IPO of LIC in FY 21-22
- The Finance Minister proposed to revise the definition under the Companies Act, 2013 for small companies by increasing their threshold for capitalization to not exceeding Rs 50 lakh to not exceeding Rs 2 crore and turnover not exceeding Rs 2 crore to not exceeding Rs 20 crore.
- Fiscal Deficit expected to be at 9.5% for 2020-21. For 2021-22, it is targetted at 6.8%.
- Pensioners over 75 years of age are exempt from filing returns. The tax applicable will be deducted by the payee bank.
- The reduced time limit for reopening of tax records for assessment to three years from six years
- To open the tax records for assessment will be 10 years if the disputed income is more than Rs. 50 lakh per year.
- Audit Exemption – from Rs. 5 cr turnover to Rs. 10 cr turnover (if transactions are more than 95% digitally)
MARKET REACTION
* BSE and NSE indexes increased by 5%
4 Comments
Is there any benefit by selecting new Regime
ReplySir, as per the tax documents of past years for which we filed your ITR, we suggest old tax regime is better for you. For other benefits, we will contact you soon.
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