Finance Minister Nirmala Sitharaman has presented the Union Budget 2021. If you are an income tax payer and want to know what you got in this budget and what not, then this news has been prepared specially for you in bullet points.
No relief to common Taxpayer
No relief has been given to the general taxpayer this time in the Union Budget 2021. They have to pay tax only on the basis of the tax slab issued last time. Explain that at the moment income up to Rs 2.5 lakh is outside the purview of income tax. Tax is taxed at 5 per cent on income of Rs 2.5 lakh to 5 lakh, 10 per cent on income between five and seven and a half lakh rupees and 15 per cent on seven and a half lakh to 10 lakh rupees. At the same time, there is a provision of 20 percent on income of 10 lakh to 12.5 lakh, 25 percent on income of Rs 12.5 to 15 lakh and 30 percent on income above 15 lakh rupees.
What does relief mean to those above 75 years of age?
The government has announced that people above 75 years of age will not have to pay ITR. Let us explain to you what this means? In fact, most people are assuming that now people above 75 years of age will not have to pay tax, whereas it is not. Only those people above the age of 75 years will come under the purview of this rule of the government, whose income basis is the interest received through other means including pension or FD. Such people will not just have to fill ITR. As before, their TDS will be deducted in the bank itself. If the medium of income is something else, such as business etc. then ITR has to be filed as well.
Relief in tax reassessment
Till now, tax re-assessment could be opened after six years and in severe cases even after 10 years. In the case of such cases, the income tax payer had to keep all the papers for six to 10 years. Now the tax reassessment has been reduced to 3 years. If in serious cases, there will be a matter of hiding income of more than 50 lakhs in a year, only then cases can be opened for 10 years. However, he would have to get approval from the commissioner.
Relief from gathering data separately
The government has given some relief to the employed people. Actually, while filling ITR till now, the employed people had to separately give the details of interest received from investment in other means including FD, apart from Form 16A. Now this will not happen. Their information will already be in Form 16A, so that the income tax payer will not have to collect data separately.
TDS will not be levied on 5 dividend payment
The Finance Minister said that home is our priority for all. Till now, there was a provision of reduction of interest of Rs 1.5 lakh on home loan. Now an additional discount of 1.5 lakh rupees in interest for affordable house will be available till 31 March 2022.
Relief by collecting 6 separate data
The government has given some relief to the employed people. Actually, while filling ITR till now, the employed people had to separately give the details of interest received from investment in other means including FD, apart from Form 16A. Now this will not happen. Their information will already be in Form 16A, so that the income tax payer will not have to collect data separately.
NRIs get discount
In the Union Budget 2021, relief has been given to Indians living abroad. Actually, they had to contend with double tax, but this will not happen now. The government has announced to give them relief. The Finance Minister said that NRIs used to face difficulty in paying taxes. In such a situation, they are being given relief from double tax.
Startups have increased tax exemption
The government has given relief to collect tax during startup. Now the government has extended its deadline to 31 March 2022.
Big announcements by the government
To give relief to taxpayers, the Finance Minister announced the formation of a faceless committee. He said that I propose to set up a dispute resolution committee. This will ensure transparency. People with taxable income up to Rs 50 lakh and disputed income up to Rs 10 lakh can go to this committee. The hearing for this will be through video conferencing. The Finance Minister said that the scope of the trust committee will also be expanded by a dispute made to resolve tax related matters. Small businessmen will also be added to this.
Lowest corporate tax in the world
The government said that the number of income tax payers in the country has increased. At the same time, corporate tax in India is the lowest in the whole world.