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Union Budget income tax changed


Senior citizen above 75 is not filling income tax return. The senior citizen are exempted from income tax return.  Exempt for filling income tax return fulfill certain conditions.   The govt. will notify a few banks where accounts holders will be eligible for exemption they will be provide a declaration specified bank.  Specified bank will have to compute the income of such senior citizen   will have furnish the return of income for assessment year.

Pre filled information:  ITR form will be pre filled information on dividend, interest and capital gains compliances for individual taxpayers.  Capital gains from listed securities, dividend income, interest from bank and post office etc. 

EPF Contribution :  Interest on employee  share to contribution  employee provident fund will be taxable at  stage of  withdrawal   exceeds  Rs 2.5 lakhs  in any year.  This along with taxation of aggregate employer contribution in excess of 7.5 lakhs to EPF

Higher TDS for non- filers of income tax  return :  Government has proposed  interest a new section 206 AB in income tax  act  as a special provisions  higher rate of TDS  of non- filer income tax return.  This section will be twice rate specified in the relevant provision act twice rate 5%.

Leave  Travel concession  Scheme  notified:  Employee can still avail exemption leave   travel concession  of one third specified expenditure  of 36000 whichever is less. They have incurred purchase goods & services of gst  12%  or more. The amendment proposed for the financial year 20-21 only.

Tax holiday  on affordable  housing  extended :  The government holiday has been extended   the additional  tax deduction is 1.5  lakhs  in  interest paid  on housing loan  purchase for affordable  by one or more year  31 march 2022. This was  allowed for buying  the first  time  and up to  45 lakhs cost.

Time limit for  filling delayed  ITR reduced:   The last date to file  revised  income tax  return or belated  return on voluntary  basis will now  31 december close the financial year  31 march  2022.The government has brought unit linked insurance plans under tax  bracket.  The redemption of unit linked insurance plans is tax exempt provide the total premium payable does not exceeds 10%   assured sum.   The annual premium was Payable by the individual exceeds 2.5 lakh subjected to capital gains  tax  at par with  equity oriented mutual  funds.   

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