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Budget 2021: No announcement on new income tax slabs in Sitharaman’s speech
This means that an individual will likely continue paying income tax under the current slabs.
Union finance minister Nirmala Sitharaman on Monday presented the Budget for the financial year 2021-22. However, the income tax slabs, one of the most anticipated announcements of any Budget, did not find any mention in Sitharaman’s speech, an indication that one will have to continue to file the tax under the existing slabs.
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In her last year’s Budget speech, Sitharaman had announced a new ‘simplified’ income tax regime. Under this, those with an annual income of up to ₹2,50,000 are not required to file any tax. The income tax rates for those earning between ₹2,50,000- ₹5,00,000 and ₹5,00,000- ₹7,50,000 annually are 5% and 10% respectively. An individual with an annual income between ₹7,50,000 and ₹10,00,000 has to pay tax at a rate of 15%, while those earning between ₹10,00,000 and ₹12,50,000 have to pay tax at a rate of 20%. Those making ₹12,50,000- ₹15,00,000 have to pay 25% tax while those earning above ₹15,00,000 have to pay at 30%.
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These rates, however, are ‘optional.’ Those who want to pay their taxes at these rates are required to forego certain exemptions and deductions. Or, they can continue to pay taxes as per the previous slabs, introduced for financial year 2019-20, and continue to avail exemptions and deductions.
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During her Budget speech, her third as finance minister, Sitharaman, the first woman to hold the post full-time, announced exemptions from filing ITRs for senior citizens above the age of 75. The exemptions will be applicable on those with only pension and interest incomes.
The Union Budget went ‘paperless’ for the first time on Monday, and was brought to Parliament by the finance minister in a tablet, instead of ‘Bahi Khata.’ Members of Parliament (MPs), as well as the general public can access the Budget on the ‘Union Budget Mobile App.’ The Budget session commenced on January 29 and will be conducted in two phases, before concluding on April 8.
