On Monday, Finance Minister Nirmala Sitharaman presented Finance Bill (Union Budget) for FY 2021-22, which did not have much for taxpayers as there were no changes were made in the direct tax front. However, FM proposed some key points in the taxation system. So let’s have a look at them.
- If the interest on employee’s share of contribution to EPF exceeds Rs 2.5 lakh in a year on or after 1st April 2021, then it will be taxable at the stage of withdrawal.
- Additional relief of ₹1.5 lakh for home loans for affordable housing. Now, homebuyers can avail additional tax relief on home loans till 31 March 2022.
- Seniors citizens above 75 years of age are not required to file income tax (I-T) returns and have income only from pension and bank interest. The aim is to reduce the compliance burden on elderly people.
- Non-resident Indians (NRIs) would be spared from double taxation, in respect of their income accrual outside India in the foreign retirement accounts.
- Relief for tax on dividend income, as the dividend payments to REITs or InvIT exempt from TDS. This is because of the fact that the amount of dividend income cannot be estimated correctly by the shareholders for paying advance tax.
- The time allowed to re-open tax investigation is now reduced to 3 years against the existing six years.
- The time limit for filing delayed or revised income-tax return is reduced by 3 months. Now, the last date to file income tax return now stands at December 31.
- To help taxpayers with a taxable income of up to Rs 50 lakh and disputed income up to Rs 10 lakh, a Dispute Resolution Committee will be set up.
- National Faceless Income-tax Appellate Tribunal Centre is to be set up for all second-level appeal cases.
- There is no increase in tax rates at all.
