On 1st February, 2021, Union Finance Minister Nirmala Sitharaman presented the budget with the aim to support the economy of the country which has been badly-hit by the coronavirus pandemic. It was her third budget speech in the Lok Sabha, where she highlighted the segments that require attention and one such area is the income tax. Although she announced any changes in income tax slabs, the individual taxpayers will see some modifications in the income tax rules.
So, whether you file your return every year or one of those people who doesn’t consider it important at all, know about the changes.
No ITR for Senior Citizen: Every senior citizen above the age of 75 year will be exempted from filing their ITR, if the person’s only source of income is pension and its interest. Also, where the pension is deposited and from where the interest income is earned, should be the same bank.
Changes in ITR Form: ITR form will now be available with already added information on interest, dividend, and capital gains to save the time, stress and hassle of the individual taxpayers. The details of the capital gains from the dividend income, listed securities, and interest from post office, banks, etc. will also be there.
Higher TDS for non-filers of ITR: The government has planned to add a new section 206AB in the Income Tax Act. It will be a special provision that will force the non-filers of an ITR to pay a higher rate for TDS. The TDS rate that has been proposed in this section will be twice the rate in force, or twice the rate mentioned in the relevant provision of the Act, or 5% of the rate.
LTC scheme notify: All the employees can get exemption for the leave travel concession (LTC). It should be one-third of expenditure mentioned or ₹36,000, whichever is less, for 2018-21 periods if the employees have incurred spending on purchase of goods or services. It should be liable to GST @ 12% or above. Nut the payment must be made via any non-cash mode and sustained between 12th October, 2020, and 31st March, 2021. The alteration is proposed to be for the 20-21 financial year only.
Tax Holiday on Inexpensive Housing Extended: In the union budget of 2021-22, the government has announced that the additional tax deduction on interest paid on housing loan for purchasing affordable homes has been extended. Now it will be up to 31st March, 2022.
Time limit reduced to file delayed ITR: The time period to file a revised ITR or belated return voluntarily has been reduce. Now it will last day of the December 2021 instead of the last day of the financial year 31st March, 2022.
Conclusion
Whether you file your ITR or not, you should keep in mind the changes that has been made by the government in this years’ union budget. It might save you from various financial hassles and stress.
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