After the global pandemic COVID-19 took down the whole world with its worst possible effects, the new budget has become a very crucial highlight in India.
The Indian government has taken prompt actions throughout 2020 to keep in control, the financial deficit.
Apart from PM care fund other measures are taken by the government, like reduction of TDS rates, reduction of interest rates on delayed tax payments and LTC voucher scheme etc.
Accordingly, with the ending of a brutal year and consequent new schemes and reforms. Everybody has high expectations regarding the new budget of 2021.
There are some of the highlights that we need to know going forward regarding some of the tax incentives.
The first thing we need to know is the “Leave travel concession cash voucher scheme” or the LTC scheme.
The LTC scheme provides tax exemptions on the expenses incurred on goods and services which come up with conditions. This scheme provides benefits to the salaried individuals who couldn’t travel due to pandemic by giving them tax relief.
Also, except the amount of Rs 50,000 for senior citizens, for hospitalization or medical expense who hasn’t been covered under a medical insurance policy, there is no deduction.
A specific deduction regarding medical expenses should be introduced with the new budget 2021.
The TDS rate has been reduced by 25% by the government for the period of May 2020-March 2021. This was to provide more liquidity to the taxpayers and the same rates could be continued for the fiscal year 2021-2022.
By providing the taxpayers with more disposable income, the government can make a long-lasting effect on everyone.
This increased disposable income can accelerate the economy by the opportunity of increased consumption.
Check all the recent news updates and share market updates