Union Budget 2021: Expectations are mixed from the upcoming Budget. Even as Finance Minister Nirmala Sitharaman has promised a never before like Union Budget, experts are not hoping for many big ticket reforms as far as personal finance and taxation are concerned. However, some are expecting the government to introduce a COVID Cess to be levied on high-income individuals. Also, on account of the pandemic, Finance Minister Nirmala Sitharaman is expected to allow a higher deduction in taxable income on account of increased health expenses and relief in the form of tax benefit under Section 80 D.
“The government’s measures to curb the pandemic has critically drained its finances in 2020. A Covid cess is expected to be levied on high-income individuals. A definitive decision whether this levy will be in the form of cess or surcharge will be taken closer to the budget date. Though no big-ticket reforms are likely to happen this year but it is expected that the govt may introduce minor tweaks to help the tax-payer,” said Pitam Goel, Founder Partner, VPTP & Co.