Virjal-Club's video: Expectations from India s Union Budget 2021 Budget after COVID-19 Lockdown Income Tax Exemption

1st :- Tax Exemtion : What are the tax exemption limits for allowances, reimbursements paid to employees? Find out An employee's salary often comprises various allowances and reimbursements some of which are partially or fully tax-exempt. However, most of these exemptions can be claimed only if the taxpayer opts to be taxed under the existing/old tax regime because very few tax exemptions are available under the new tax regime. From FY 2020-21, an individual taxpayer has to choose whether he/she wants to be taxed as per new tax regime or existing/old tax regime. The new tax regime introduced in Budget. 2nd : Section 80D: Deduction for Medical Insurance & Health Checkup: Section 80D provides for tax deduction from the total taxable income for the payment (by any mode other than cash) of medical insurance premium paid by an Individual or a HUF. This tax deduction is available over and above the deduction of Rs. 1,50,000 under Sec. 80C. The deduction under Sec 80D is allowed for making a payment to effect or keep in force an insurance policy which:- In case of an Individual:- Is for the health of the assessee or on the health of the wife or husband, dependent parents or dependent children of the assessee, or In case of HUF: Is for any Member of the Family The Deduction that can be claimed under Sec. 80D at the time of filing of income tax return is the sum of the following:- In case the payment of medical insurance premium is paid by the assesse for himself, spouse, dependent children – Rs. 25,000. In case, the person insured is a Senior Citizen, the deduction allowed should be Rs. 30,000. In case the payment of medical insurance premium is paid by the assesse for parents, whether dependent or not – Rs. 25,000. In case the parents of the Assessee are Senior Citizens the deduction allowed under Section 80D should be Rs. 30,000. The deduction for senior citizens has been increased from Rs. 30,000 to Rs. 50,000 from Financial Year 2018-19 onwards (Announced in Budget 2018). 3rd : Residential Status : Having recently completed a short survey for personal study on trend, it was almost impulsive that I swiped the article to scan for details. It was about how, in a major policy change for IT, ITeS and BPO/ KPO industries, the Department of Telecom has significantly eased guidelines known as Other Service Provider (OSP) Guidelines. These guidelines required the companies operating in various businesses such as Telebanking, Telemarketing, Call Centers, etc. to register their OSP centers and prevented employers from extending ‘Work from Home’ facility to their employees. Now under the new OSP Guidelines, the registration requirement has been done away with and, in fact, the Guidelines now specifically provide that OSPs may operate as ‘Work from Home’ or ‘Work from Anywhere’. However this article is not about the changes in OSP Guidelines. This is about the proactive decision of government to promote Work from Home environment in BPO and other industries. Does this indicate that keeping aside rhetoric, there is indeed a common belief that Work from Home will be the norm going forward? Well, atleast my survey tells so. Finding 1 – The survey was taken by 156 people (told you it was short and personal!), working in diverse roles, businesses, and industries. Out of the total respondents, 88% people agree or strongly agree that Work from Home is indeed the new normal. 5th and 6th : The Union Budget 2021 is just days away. Amid concerns over the severe impact of coronavirus (COVID-19) on India’s GDP growth during the past year, Finance Minister Nirmala Sitharaman will present her third Union Budget on February 1, 2021. Ahead of the budget, the customary ‘halwa ceremony’ was held on Saturday at the Union Finance Ministry headquarters at North Block in New Delhi. On the occasion, Sitharaman also launched the “Union Budget Mobile App” for hassle-free access of Budget documents by Members of Parliament (MPs) and the general public.