Union Budget 2021: 8th Budgets of Modi Govt. – Where the common man got relief in tax, where increased burden

Budget 2021: The budget to be presented on February 1, 2021-22 will be the third budget of the second term of the Modi government. Five times in the first term of the Modi government, the then Finance Minister Arun Jaitley presented the budget. At the same time, due to the Lok Sabha elections in 2019, an interim budget was presented in February 2019 and then in July 2019, the full general budget came. Since the Narendra Modi government came to power for the first time in 2014, many big announcements have been made in the budget for taxpayers. Be it the relief of additional deduction on interest of the home loan, increase in rebate or offer alternative tax slab. Let us know what the Modi government has done for the common people from the budget of 2014 till now…

Modi 1.0’s first budget

The interim budget was presented in February due to the 2014 Lok Sabha elections. Then the Modi government came to power and the then Finance Minister Arun Jaitley presented the General Budget in July. In the full budget of 2014, the basic tax exemption limit was increased from 2 lakh to 2.5 lakh rupees. For senior citizens, this limit has increased from Rs 2.5 lakh to Rs 3 lakh. At the same time, the limit of tax deduction under section 80 (C) was increased from Rs 1.1 lakh to Rs 1.5 lakh. Under Section 24, the tax exemption limit on home loan interest increased from Rs 1.5 lakh to Rs 2 lakh.

Budget 2015

• Under Section 80CCD (1b), a tax rebate of 50 thousand rupees was announced on investment in NPS. By combining section 80C and 80CCD (1b), now the benefit of tax exemption of Rs 2 lakh started.
• Interest paid on investment in Sukanya Samriddhi Yojana was tax free.
• The tax deduction limit on health insurance premium for individuals increased from Rs 15 thousand to Rs 25 thousand. In the case of senior citizens, this limit has increased from Rs 20 thousand to Rs 30 thousand.
• Transport allowance limit of the salaried class has been increased from Rs 800 to Rs 1600 per month.
• The surcharge on individuals with an annual income of more than Rs 1 crore was increased from 10 percent to 12 percent.
• Wealth tax abolished.

Budget 2016

• Tax rebate was increased from 2000 to 5000 rupees for those below 5 lakh income.
• The new home buyers were given an additional tax rebate of Rs 50,000 for interest to be paid on loans up to Rs 35 lakh.
• For those paying house rent, the tax exemption under section 80GG was increased from 24,000 to 60,000 rupees.
• The surcharge on individuals with an annual income of more than Rs 1 crore was increased by 3 percent to 15 percent.

Union Budget 2021: Health budget will be special due to Corona! This is a wishlist from the medical device to the pharma industry

Budget 2017

• Income tax rate was reduced from 10 percent to 5 percent for income ranging from 2.5 lakh to 5 lakh rupees.
• A tax rebate of Rs 12,500 was given to all taxpayers.
• A provision of 10 percent surcharge was made for people with annual income of Rs 50 lakh to Rs 1 crore.

Budget 2018

Arun Jaitley as the Finance Minister in the Modi government last presented the budget for 2018-19. The standard deduction was brought back in this.

• Standard deduction of 40,000 rupees for salaried individuals was brought back. However, in return, the tax rebate on medical reimbursement of Rs 15,000 and a transport allowance of Rs 19,200 was abolished.
• 10% tax was levied on long-term capital gains (LTCG) of more than Rs 1 lakh from equities.
• The cess was increased from 3 percent to 4 percent.
• Tax exemption was given to the interest income of senior citizens up to Rs 50,000, earlier this limit was Rs 10,000. Apart from this, for senior citizens, tax exemption on medical expenses up to Rs 50,000 was given under Section 80D.

Interim Budget 2019

• The tax rebate limit was increased from Rs 2500 to Rs 12500. Due to this, income up to 5 lakh rupees was tax free.
• Standard deduction was increased from Rs 40000 to Rs 50000.
• Interest up to Rs 40000 on deposits in bank or post offices was tax-free. Earlier this limit was 10000 rupees.
• The TDS limit on rent has also been increased from Rs 1.80 lakh to Rs 2.40 lakh.
• The second self-occupation house of a person was made tax free. Earlier the rule was that even if your family members are living in your second house i.e. you have not given the rent on rent, there was a rent calculation on that house according to the surrounding area. The government used to calculate tax on this.
• Provision has been made under section 54 that if one buys two houses with the money received from selling one house, then both houses will be exempt from tax. Earlier this exemption was limited to only one new house. However, the condition is that the capital gains made by selling houses should not exceed Rs 2 crore.

Union Budget 2021: Market gives 18% return since the budget, these stocks have the biggest pocket

Budget 2019

After the Modi government once again came to power at the Center after the general elections held in March 2019, Finance Minister Nirmala Sitharaman presented the full budget in July 2019.

• The tax deduction benefit was increased to Rs 3.5 lakh on the interest paid on the home loan taken till 31 March 2020 to buy a house up to Rs 45 lakh. Earlier, the tax deduction limit under Section 24 of the Income Tax Act was Rs 2 lakh. But under the new section 80EEA in the budget 2019, an additional deduction up to Rs 1.5 lakh was proposed on home loan interest.
• Surcharge on the income of 2 to 5 crore was increased by 3 percent and surcharge on income of more than 5 crores was increased by 7 percent.
• It was announced to impose 2% TDS on cash withdrawal of more than Rs 1 crore in a financial year by combining all the accounts of a person in the same bank / co-operative bank/post office.
• It was announced that a tax deduction of up to Rs 1.5 lakh could be made on the interest paid on taking a loan to buy an electric vehicle (EV). The claim for new tax deduction on the interest of EV loan can be made from April 1, 2020 under section 80EEB of the Income Tax Act. For this, this loan should be taken between 1 April 2019 to 31 March 2023.
• Mandated tax deducted at source at the rate of five per cent (TDS) for individuals and HUFs paying more than Rs 50 lakh per annum to contractors or professionals.
• Some other charges for TDS were also proposed to be taken into consideration by the payment made for the acquisition of immovable property. These include the purchase of property, club membership, car parking fee, payment of electricity or water supply services, maintenance charges including other charges.
• It was announced that it would be mandatory to deposit more than one crore rupees in the current account, pay electricity bills of more than one lakh rupees and file income tax returns for those who spent two lakh rupees on travelling abroad in a year.

Budget 2020

In Budget 2020, alternative income tax slabs were announced. Now both the old traditional income tax slab and the new alternative tax slab are available to taxpayers. The optional tax slab is as follows-

Remember that the income taxpayers adopting alternative tax slabs will not be able to take advantage of certain deductions and exemptions.

It was proposed to extend the additional deduction of up to 1.5 lakh rupees a year for the purchase of cheap houses. In the budget 2019, the government had made a provision for an additional deduction of up to Rs 1.5 lakh on the interest payment of home loans. For this, a new section 80EEA was added to the Income Tax Act. However, only those people who took loan between April 2019 and March 2020 could take advantage of it. In the budget 2020, this deadline was extended for one year. A tax deduction of up to 2 lakh rupees is available under Section 24 on the interest payment of a home loan. At the same time, a deduction up to Rs 1.5 lakh is available under section 80C on the principal amount.

• DDT was abolished on dividends paid by companies and mutual funds.
• It was proposed to amend section 206C of the Income Tax Act to recover TCS on the sale of Overseas Remittance and Overseas Tour Packages. According to the new rules under section 206C, TCS will be payable at the rate of 5 per cent if a person sends an amount of Rs 7 lakh or more as remittance under LRS outside India in a financial year. If the PAN or Aadhaar is not provided to the Authorized Dealer or Tour Package vendor, the TCS rate will be 10%. However, refund can be found by filing income tax return.
• Tax concession to promote startups
• Declaration of Confidence Scheme to reduce litigation of direct tax.

Union Budget 2021: 24700 hospitals so far, 128 million e-cards; After the budget, the scope of Ayushman scheme increased

Source: www.financialexpress.com