union budget 2021

Finance Minister Nirmala Sitharaman revealed the much-awaited Union Budget 2021-22 recently. While healthcare, insurance, and MSMEs took the center stage, we dived into the fine print so as to figure out the changes that impact the tax-paying majority – the common man.

Here are the top benefits of Budget 2021 for the common man:

Gold investment

Instead of buying physical gold, the government is encouraging people to purchase RBI-issued Sovereign Gold Bonds (SGBs). These bonds will be purchased at the current gold price in the market. However, buyers will gain interest worth 2.5% per annum on the bond price and provided that the bonds are encashed after maturity, the capital gains tax will not be applicable on the final amount.

Home Loans

Real estate is almost destined to boom this year with low property prices, home loan interests, and state exemptions on various taxes. In addition, according to the budget, property purchased as a joint venture between spouses entitles both for an individual deduction worth Rs 2 lakh. This can be eligible for three if the couple’s child is working and the bank agrees to a 3-way split loan. Furthermore, notional rent will not be added to the taxable income for the second house irrespective of tenant occupancy.

No returns for 75+

People above the age of 75 living on a pension and income interest only are not required to file income tax returns. However, the exemption stands canceled if the concerned individual has outstanding mutual fund investments or receives rent from any property. In the next few months, the government will release a list of specific banks and mandatory specific declarations that enables the elderly to avail of this tax concession.


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