5 tax changes you can expect from the budget 2021

Jan 31, 2021

By: BI India Bureau

1. Increase in standard deduction

This may be brought in for people working from home

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2. More rebates under Section 80C may be tweaked

In order to push more investments in desired sectors like housing

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3. More leave travel allowance (LTA) for more vacations

Currently you can avail this twice in a block of 4 years and the restriction may be eased

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More sops promote more domestic travel

There may be additional benefits for using LTA within the next year or six months

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4. Industry wants to increase incentive for R&D

However, the annual economic survey has argued against more sops for R&D by pvt sector

Credit: BCCL

Chief Economic Advisor says..

...pvt sector should invest in R&D for its own survival, not for tax breaks

Credit: BCCL

5. More tax incentives for creating jobs

Industry wants govt to increase sops for creating more jobs

Credit: BCCL

Currently, there is a tax benefit for...

.. employing people at a salary of up to ₹25,000.

Credit: BCCL

Jobs, jobs, jobs

Industry wants the threshold to rise

Credit: BCCL

Tax sops to boost consumption

More money in the taxpayers pocket will boost demand

Credit: BCCL

Indian Prime Minister Narendra Modi makes his points on China, Afghanistan and Pakistan at the United Nations General Assembly