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Crucial Income Tax Changes In Past Budgets

Budget For The Common Man: Crucial Income Tax Changes In Past Budgets

Finance Minister Nirmala Sitharaman will current the Union Finances for 2021-22 on February 1

Finance Minister Nirmala Sitharaman will current the Union Finances for 2021-22 on February 1. Identical to yearly, monetary specialists and the frequent man will eagerly await bulletins on the taxation entrance. The federal government has made some drastic adjustments in revenue tax guidelines through the years, starting from adjustments in revenue tax charges to reintroduction of ordinary deduction and a better revenue threshold for rebate, and the upcoming funds could also be no totally different.

Here is a short description of key tax adjustments introduced within the Union Finances since 2014:

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Finances February 2020

  • A brand new and simplified private tax regime consisting of revised revenue tax slabs and tax charges
  • Beneath the brand new tax construction, individuals incomes Rs 5-7.5 lakh must pay simply 10 per cent, whereas these incomes as much as Rs 5 lakh yearly can pay no tax.

Finances June 2019

  • TDS (tax deduction at supply) of two per cent to be relevant for money withdrawals exceeding Rs 1 crore per yr
  • Reduction in securities transaction tax (STT)
  • Corporations with an annual turnover of Rs 400 crore to come back below the tax bracket of 25 per cent

Finances February 2019

  • Particular person taxpayers with annual revenue as much as Rs 5 lakh to take pleasure in full tax rebate
  • No tax on revenue as much as Rs 5 lakh a yr
  • No tax on revenue of Rs 5 lakh-Rs 6.5 lakh, in case of investments
  • Normal deduction elevated from Rs 40,000 to Rs 50,000
  • TDS threshold on curiosity from financial institution deposits and postal financial savings raised from Rs 10,000 to Rs 40,000
  • TDS threshold on rental revenue hiked to Rs 2.4 lakh from Rs 1.8 lakh
  • Capital features from residential property sale made eligible for exemption below Part 54, for as much as two properties
  • No income-tax to be relevant on notional lease on second self-occupied dwelling

Finances 2018

  • Hike in cess from 3 per cent to 4 per cent
  • Normal deduction of Rs 40,000 for salaried people
  • For senior residents
  • Exemption of curiosity revenue on financial institution/submit workplace deposits raised from Rs 10,000 to Rs 50,000
  • Deduction restrict for medical insurance premium/medical expenditure elevated from Rs 30,000 to Rs 50,000, below part 80D of Revenue Tax Act

Finances 2017

  • Discount in revenue tax fee on revenue of Rs 2.5 lakh-5 lakh, from 10 per cent to five per cent
  • Rebate below Part 87A decreased from Rs 5,000 to Rs 2,500; no rebate on revenue above Rs 3.5 lakh
  • Surcharge of 10 per cent on revenue of Rs 50 lakh-Rs 1 crore
  • Penalty as much as Rs 10,000 for failure to file returns on time (no more than Rs 1,000 on revenue as much as Rs 5 lakh)
  • Abolition of deduction on funding in Rajiv Gandhi Fairness Saving Scheme

Finances 2016

  • Enhance in surcharge from 12 per cent whole revenue to fifteen per cent, over Rs 1 crore
  • Tax rebate for people with revenue as much as Rs 5 lakh, raised from Rs 2,000 to Rs 5,000
  • Further deduction as much as Rs 50,000 on curiosity cost for first-time dwelling mortgage debtors (over and above Rs 2 lakh)

Finances 2015

  • Wealth tax abolished
  • Surcharge on revenue above Rs 1 crore elevated to from 10 per cent to 12 per cent

Finances 2014

  • Revenue tax exemption restrict raised by Rs 50,000 to Rs 2.5 lakh (Rs 3 lakh for senior residents)
  • Exemption restrict for funding in monetary devices below Part 80C of the Revenue Tax Act
  • Deduction restrict on curiosity on mortgage for self-occupied home hiked from Rs 1.5 lakh to Rs 2 lakh

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