Home Uncategorized Higher deduction in taxable income, benefit under Section 80D expected in Budget...

Higher deduction in taxable income, benefit under Section 80D expected in Budget 2021

Union Budget 2021: Expectations are mixed from the upcoming Budget. Even as Finance Minister Nirmala Sitharaman has promised a never before like Union Budget, experts are not hoping for many big ticket reforms as far as personal finance and taxation are concerned. However, some are expecting the government to introduce a COVID Cess to be levied on high-income individuals. Also, on account of the pandemic, Finance Minister Nirmala Sitharaman is expected to allow a higher deduction in taxable income on account of increased health expenses and relief in the form of tax benefit under Section 80 D.

“The government’s measures to curb the pandemic has critically drained its finances in 2020. A Covid cess is expected to be levied on high-income individuals. A definitive decision whether this levy will be in the form of cess or surcharge will be taken closer to the budget date. Though no big-ticket reforms are likely to happen this year but it is expected that the govt may introduce minor tweaks to help the tax-payer,” said Pitam Goel, Founder Partner, VPTP & Co.

Section 80D Benefit

“Higher deduction in taxable income can be expected on account of increased health expenses during the pandemic. Some relief in the form of tax benefit under Section 80D of the Income Tax Act is expected,” said Goel.

According to Goel, it is also anticipated that the government might increase the Long term capital gain on the sale of shares and equity-oriented mutual funds. “Currently, MSMEs receive funding assistance under the Credit Guarantee Fund for Micro and SmalI Enterprise Scheme of the central government wherein they receive a collateral-free credit. Several MSME bodies are expecting that the collateral-free loan limit should be enhanced by the government to 5 Crore,” he said.

On GST front, Tushar Aggarwal, Founder Partner, Tattvam Advisors, said: “To boost the hard-hit sectors like tours and travel, hospitality, etc. GST rate should be decreased until normalcy is achieved. Moreover, to better the cash flows of businesses especially the MSME and real estate sector, relaxation for payment of GST on a receipt basis would be a welcome step.”

Source :-financialexpress.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

Cocktail recipe: Make delicious Bloody Mary in minutes

The weekend is here! It is the time to unwind and relax. What better way to do this than indulge in a...

Indian Railway closes these services: These two railway services are going to be closed, know otherwise there will be problem

Indian Railway closes these services: Most of the trains were stopped due to Corona, but now once again the trains have started gaining...

iPhone 13 country wise price list: Compare India, US, Australia, UAE, Canada rates to save up to Rs 40,000

In India, the retail price of the iPhone 13 is set at Rs 79,900 for the 128GB storage model while the most...

big news! Ordering food from Swiggy-Zomato will be expensive, GST council committee recommended

Online food delivery can be expensive in the coming days. The fitment panel of the committee has recommended for bringing food delivery...

Know-How To Protect Your Bank Account From KYC Scam

On Tuesday, the Reserve Bank of India issued a warning stating that the general public of the increase in fraud. On September...