The first budget since the Covid19 phase is extremely crucial and essential for the staggering economy that has been inflicted with low growth rates. Keeping this in view the budget this year is going to impact the growth in the coming decade. This budget is aiming to revive the economy by giving numerous relaxations and benefits.
The highlights of the budget related to taxation are:
- The income tax for senior citizens (above 75 years) will be scrapped on income/earning which is either a pension or earned as an interest.
- The NRI will not be taxed twice.
- TAX Slab:
|Income per annum||Tax Rate|
|Below Rs. 2.5 lakh||Untaxable|
|Rs 2.5 to Rs 5 lakh||5%|
|Rs 5 – Rs 7.5 lakh||10%|
|Rs 7.5 lakh to Rs 10 lakh||15%|
|Rs 10 lakh to Rs 12.5 lakh||20%|
|Rs 12.5 lakh to 15 lakh||25%|
|Above Rs 15 lakh||30%|
The highlights of the budget related to EPF Contribution are:
- If provident fund contributions exceed Rs. 2.5 lakhs, then the interest earned on the excess amount contributed will be taxable.
- This is applicable only on contributions that are made after April 1, 2021
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