In the new Union Budget, finance minister, Nirmala Sitharaman made some changes in the rules for income tax.
These changes are written below acc. to the Union Budget
- Senior citizens above the age of 75, who only have pension and interest as a source of income. It will be exempted from filing their income tax return. Only if they fulfil certain conditions, they are exempted from filing an ITR and not from paying the tax.
Few banks will be notified by the government where account holders will be eligible for exemptions and a declaration to the specified bank will have to be provided. Then those banks will have to calculate the income of senior citizens as per the Act and proceed accordingly.
- Now dividend, interest and capitals gains will be pre-filled on ITR form.
- If an employee’s share of contribution’s interest to EPF, on or after April 1, 2021, exceeds 2.5 lakhs INR in any year, he/she will be taxable at the stage of withdrawal.
- Any dividend payment to REITs and InvITs will be exempted from TDS.
- A new section (206AB) has been added in the Income Tax Act, which means that there will be higher TDS for non-filers of an income tax return.
- Employees can still avail exemption for leave travel concession (LTC) of one-third of specified expenditure or ₹36,000 whichever is less, for the block of 2018-21. If they have incurred expenditure on purchase of goods/ services liable to GST @ 12% or more, provided the payment is made via non-cash mode and incurred during the period October 12, 2020, to March 31, 2021. The amendment is proposed to be for the financial year 20-21 only.
- There has been an extension of one more year in the additional tax deduction of 1.5 lakh INT on interest paid on housing loan for the purchase of an affordable home.
- Instead of 31 March, 2020, the last date to file revised or belated income-tax return will be December 31, after the closing of financial year.