Budget 2021: Modi govt to make big announcement for middle class

During the COVID-19 pandemic many lost their jobs and had to face pay cuts. Last year, the government had announced a package of Rs 30 lakh crore. But it did not benefit the middle class. So the middle class masses in this time’s budget.

The demand for raising personal income tax from 2.5 lakhs to 5 lakhs has been going on for many years. Last year, the government had given 12,500 special rebates in the budget to those earning between Rs 2.5 lakh and Rs 5 lakh. But this time, income up to Rs 5 lakh will be completely exempted from income tax.

Two methods were introduced in income tax last year. It was possible to deduct the benefit from the deductions. But according to experts, those with an annual income of up to Rs 13 lakh will not benefit from this. So many old-fashioned.

It has been demanded to increase the standard deduction limit. So far, the deduction limit is up to Rs 50,000. This can be increased to a minimum of Rs 75,000. Corona has caused great hardship to the citizens. Health due to inflation.

Work from home in the Corona crisis is now a matter of time. As a result, the cost of the working class has also increased. Many companies have also paid for the additional staff costs. But it is also taxed. Therefore, rebate deduction can be facilitated.

The limit of income tax relief for home loan holders can be increased. Under 80C of income tax, home loan holders get a rebate of up to Rs 1.50 lakh. This can be increased. Apart from this, income tax exemption is also given on interest up to Rs 2 lakh under 24B.

The Corona epidemic has greatly increased the importance of health insurance and created awareness about it. Most companies offer health insurance to employees on a mandatory basis. As per 80D of income tax, 50 thousand on health insurance for oneself and one's family in general.

Expenditure on health facilities has also increased. Many are now opting for better health insurance for their families. It involves paying a tax on health insurance premiums. Therefore, the tax deduction received on the insurance premium under 80D can be increased at this time.

Vaccination and health care improvements can be of great benefit to the middle class, experts say. The creation of several new hospitals could be announced. Emphasis can also be placed on job creation this year. This could benefit the middle class people.