The Union Budget announced on 1st February 2021 has addressed critical issues and paved a way forward. The focus sectors or rather the theme of the budget was Health care and Infrastructure.
Among the many, here are a few key takeaways from the announcement that would impact individuals:
- With respect to taxes, there is now an exemption for senior citizens (75 years and above) who withdraw pension and interest income from filing their taxes.
- There will be no tax exemptions for the maturity proceeds of unit-linked insurance policies that hold an annual premium more than Rs.2.5 Lakhs. It will be taxable on par with equity-linked mutual fund schemes.
- From 49% to 74%. The permissible FDI limit is now increased for insurance firms, safeguarding foreign ownership.
- With the objective of housing for all, the finance ministry has announced an additional deduction of Rs.1.5 lakhs for home loans taken until March 31, 2022.
- The interest on employee’s share of contribution to EPF on or after April 1, 2021 will be taxable at the stage of withdrawal if in case it exceeds Rs. 2.5 Lakhs in any year.
- And finally, the union budget for 2021 did not propose a change in the income tax slabs or rates.