Srinagar, January 31: All eyes will be Union Budget 2021 that is scheduled to be announced on February 1, 2021 by Finance Minister Nirmala Sitharaman.  This is the first time that the Union Budget papers will not be printed since Independence, due to the COVID-19 pandemic. The main focus will be on the income tax slabs this time as India limps back to normalcy after businesses were severely hit by the pandemic. The tax slab is however subject to change and is revised every year during the budget session. When Will Union Budget 2021 be Presented? Here's What You Can Expect From It as Budget Goes Paperless Amid COVID-19 Pandemic.

Under the current income tax rates and slabs, taxpayers have to pay 10 percent tax on income between Rs 5 lakh and Rs 7.5 lakh, 15 percent on income between Rs 7.5 lakh and Rs 10 lakh, 20 percent on income between Rs 10 lakh and Rs 12.5, and 25 percent on income between Rs 12.5 lakh and Rs 15 lakh. Budget 2021 IT Slab And Personal Finance Expectations: No Major Deductions Expected, Income Tax Exemption up to Rs 3 Lakh Under Section 80C Likely.

Check Current Income Tax Rates And Slabs of 2020-21:

Income Per Annum Existing Tax Rate New Tax Rate
Rs 0-2.5 Lakhs 0% 0%
Rs 2.5-5 Lakhs 5% 5%
Rs 5-7.5 Lakhs 20% 10%
Rs 7.5-10 Lakhs 20% 15%
Rs 10-12.5 Lakhs 30% 20%
Rs 12.5-15 Lakhs 30% 25%
Above Rs 15 Lakh 30% 30%

Check Current Income Tax Rates And Slabs of 2020-21:

Income Slabs (Individual below 60 years of age) Tax Rates Income Slabs (resident & above 60 years but below 80 years) Tax Rates Income Slabs (resident & above 80 years) Tax Rates
Total income up to Rs. 2.5 Lac NIL Total income up to Rs. 3.00 Lac NIL NA NA
Total income exceeds Rs. 2.5 Lac but less than Rs.5 Lac 5% on amount exceeding Rs. 2.5 Lac Total income exceeds Rs. 3 Lac but less than Rs.5 Lac 10% on amount exceeding Rs. 3.00 Lac Total income up to Rs. 5 Lac NIL
Total income exceeds Rs. 5 Lac but less than Rs.10 Lac 20% on Income exceeding Rs. 5 Lac + Rs. 25,000 Total income exceeds Rs. 5 Lac but less than Rs.10 Lac 20% on Income exceeding Rs. 5 Lac + Rs. 20,000 Total income exceeds Rs. 5 Lac but less than Rs.10 Lac 20% on Income exceeding Rs. 5 Lac
Total income more than Rs. 10 Lac 30% on Income exceeding Rs. 10 Lac + Rs. 1,25,000 Total income more than Rs. 10 Lac 30% on Income exceeding Rs. 10 Lac + Rs. 1,20,000 Total income more than Rs. 10 Lac 30% on Income exceeding Rs. 10 Lac + Rs. 1 Lac

Watch Current Income Tax Slabs Here:

The new tax system continues to co-exist with the old/existing one that comprises of three tax rates and various tax exemptions and deductions available to a taxpayer. These income tax slabs and rates had come into effect last year from April 1, 2020 for FY 2020-21. The Economic Survey 2020-21, which was presented in the Parliament on Friday by Sitharaman stated that the Indian economy is witnessing a 'V' shaped recovery due to a timely and stringent lockdown, and it is expected to grow at over 11 per cent in the next fiscal.

(The above story first appeared on LatestLY on Jan 31, 2021 03:14 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).