Budget 2021 IT Slab And Personal Finance Expectations: No Major Deductions Expected, Income Tax Exemption up to Rs 3 Lakh Under Section 80C Likely

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Mumbai, January 22: The Budget 2021 will be presented by FM Nirmala Sitharaman on February 1, 2021. Even as Finance Minister Nirmala Sitharaman has promised a never before like Union Budget, due to the COVID-19 scenario, experts are not hoping for many big-ticket reforms as far as personal finance and taxation are concerned.

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Here are a few expectations:

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  • According to reports, experts are hoping that FM Nirmala Sitharaman will raise the Income Tax deduction limit under Section 80C of the Income Tax Act up to Rs 3 lakh in the upcoming Budget.

  • 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

  • Individual taxpayers are hoping for personal tax relief in the budget.The economy is battered by the impact of coronavirus. In this backdrop, research and advisory firm Taxmann expect the government not to announce any new tax deductions in the upcoming Budget.