A very positive outlook is witnessed in the market since the very announcement of the Union Budget 2021.
The budget has really stood up to everyone’s expectations as Nirmala Sitharaman has lived up to her promise.
The Union Budget is indeed truly growth oriented and it is evident by the Sensex pushing up by 2314 points right after the budget announcement.
Also, there are many new things that are coming for the taxpayers with the new session.
The budget has filled up a major tax leak by cutting down the Provident Fund contribution. Now the salaried employees will earn a tax-free income.
A lot of employees contribute a great sum in their PF accounts in order to earn tax-free interest rates. This situation has been put in control, now this PF amount has been capped at Rs 2.5 lakh per year.
However, the interest amount earned on PF contributions beyond Rs 2.5 lakh on an annual basis will be taxable.
Further, this will be applicable only to the employees. The employer doesn’t have to make this contribution.
Now the citizens above the age of 75 will not have to file returns on pension and interest.
Along with this, the ULIPs will also get taxed.
Moreover, there is a good-news for the home buyers as well. The budget has expanded the eligibility window for home loans under section 80EEA by next year.
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