Every year there are changes in the Income Tax rules of India in the Union Budget. Keeping these changes in mind we come up with our Income Tax Calculator India every year. The latest budget was presented in February 2021 and made the following changes.
Income Tax Changes in Union Budget 2021
There was No major changes in income tax in Budget 2021. The only change was the interest earned on contribution of more than Rs 2.5 Lakh in a year through EPF or VPF would be added to the income and taxed at marginal tax rate.
Also the biggest change in Budget 2020 regarding income tax was introduction of new tax slabs in case you do not want to take benefit of various tax deductions like standard deduction, Chapter VI A deductions, HRA benefit, LTA, home loan interest for self-occupied homes etc. continues.
From last year you have the option to choose on what you want to follow:
- New Tax Slabs but forgoing all tax deductions
- Continue with old tax slabs with all tax deductions
The income tax…