Every common man is awaiting to hear a sigh of relief with Budget 2021, which is going to be announced for the next financial year 2021-22 also would be presented in the Parliament on February 1, 2020.

The rate of Economy dipped is not unknown to anyone due to a global pandemic, the entire year 2020 has turned out to be a ‘zero year’ in terms of Economy. With the dwindling production, sales, earnings, salaries have all been drastically affected due to onslaught of this global pandemic called Covid-19. The rate of exports has also dropped in the already static economy of our country has taken a major beating on this account. 

Nonetheless, the netizens have pinned their eyes on the budget and the speech of the Finance Minister Nirmala Sitharaman’s Budget on 2021. The expectations of all sections of the society are very high as all expect that the upcoming budget 2021 would provide much-needed interval to them.

The following are some of our expectations for the coming year especially in the field of Direct Taxes levied on a Taxpayer:

a) Easing of Rates of Individual Income Tax: The Corporate Tax for most of the corporates is 22%. Adding surcharge and cess, the same is 25.17% without any capping. 

b) Lowering of Tax slabs for LLP & Partnership Firms: The rates of LLP & Partnership firms is 30% plus 12% surcharge (above Income of Rs. 1 crore) & 4% cess. 

c) The Super Rich Tax is payable on gross total income including Long Term Capital Gains

d)  Exemption u/s 87A: It is available to individual assessees and not to HUFs. This is discriminatory in as much as the rate of Taxation is the same for both these class of assessees. There appears no rationale for denial of this exemption to the HUFs.

e) Exemption u/s 43CA & 56(2) of Income Tax: Should be retained for the entire financial year 2021-22. It is pertinent that the Atmanirbhar Bharat Package 3.0 was announced by FM to provide relief to Real Estate Developers and home buyers on November 12, 2020.

Every common taxpayer will also have eyes glued into the new Budget 2021 announcements by the FM that can help them save tax and also grow their savings for their long term goals.