Pranam *changes announced in Budget 2021 taxpayers should know:* 1) In order to ease compliance for the taxpayer, details of salary income, tax payments, TDS, etc. already come *pre-filled* in income tax returns. To further ease filing of returns, details of capital gains from listed securities, dividend income, and interest from banks, post office, etc. *will also come pre-filled. -----------------------1*
2) For ease of compliance, the government proposed to make dividend payment to REIT/ InvIT exempt from TDS. Further, as the amount of dividend income cannot be estimated correctly by the shareholders for paying advance tax, the government proposed that advance tax liability on dividend *income shall arise only after the declaration/payment of dividend*. In the previous budget, the government had abolished dividend distribution tax to incentivise investment and dividend was made taxable in the hands of shareholders. *-----------------------2 cash or accrued basis.* 3) Higher TDS for non-filers of income tax returns: Budget 2021 proposed to insert a new section 206AB in the Income Tax Act as a special provision providing for higher rate for TDS for the non-filers of income-tax return. The proposed TDS rate in this section is higher of the followings rates:- Twice the rate specified in the relevant provision of the Act; or twice the rate or rates in force; or the rate of 5% ------------------*3* pre-penalty for non-compliance 4) To ease the compliance for senior citizens, the government exempted individuals above 75 years of age from filing income tax returns (ITR), *subject to some conditions:* In cases where the senior citizen is earning pension income and interest income. The government will be *notifying a few banks* where account holders will be eligible for this exemption. The individual will be needed to furnish *a declaration to the specified bank. ------------------4 * 4A) Once the declaration is furnished, the specified bank would be required to *compute the income *of such senior citizen after giving effect to the *deduction* allowable under Chapter VI-A and rebate allowable under section 87A of the Act, for the relevant assessment year and deduct income tax on the basis of rates in force. Once this is done, there will not be any requirement of furnishing return of income by such senior citizen for this assessment year. 5) Budget 2021 has brought Unit Linked Insurance plans (ULIPs) under tax bracket. Currently, the redemption of ULIPs is tax exempt provided the total premium payable for the policy *does not exceed 10% of the assured sum. ----5* 5A Under the new proposals, the redemption of ULIPs issued on or after 1 February 2021 where the annual premium payable by the individual *exceeds ₹2.5 lakh* would be subjected to capital gains tax, at par with equity oriented mutual funds. 5B ) Interest income on own contributions made by an employee in excess *of ₹2.5 lakh in* a year on or *after 1 April 2021* to provident fund is now taxable. Currently, any accumulated balance is treated as tax exempt under provided the employee has rendered continuous service of five years or more. 6 ) 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 *12 October 2020 to 31 March 2021*. The amendment is proposed to be for *FY20-21 only. ------------------------6 * 7) "As a measure to reduce litigation for small taxpayers where returned income is up to *₹50 lakh and aggregate amount of variation is up to ₹10 lakh in a specified order,* a separate dispute resolution committee to be set-up," said Aditya Hans, Partner, Dhruva Advisors LLP. ---------------------------------7 8) "Time limit for filing belated or revised returns curtailed by three months i.e. *For AY 2021-22,* last date for belated/revised return would be *31 December 2021* (instead of 31 March 2022)," he added. ---------------------------8 ONY----------------- 9) To give a fillip to the housing sector, the government *extended the additional tax deduction of ₹1.5 lakh on interest paid* on housing loan for purchase of affordable homes by *one more year to March 31, 2022*. The additional deduction of ₹1.5 lakh over and above ₹2 lakh was introduced in the 2019 budget. This was allowed for those buying homes for the first time and of *up to ₹45 lakh cost*.-----9 ONLY 10 Apart from these customs duty enhanced etc. KR: In short a procedural and conditional proposal under the new cloak budget. KR IRS 5121 (courtesy google) On Wed, 3 Feb 2021 at 15:55, Sithamalli Balasubramanian < [email protected]> wrote: > Thanks. It is a good clarification. > Even otherwise the banks were involved in the TDS andform 15H > Skb. > > On Wed, 3 Feb 2021 at 13:28, Markendeya Yeddanapudi < > [email protected]> wrote: > >> Why not ask the Super seniors or even those whose only incomes are >> pension and the fake income interest on bank deposits,just mail 26AS as the >> return?When there are FDs in many banks it will become complicated.Just >> mailing 26As must do the job. >> YM >> >> On Wed, Feb 3, 2021 at 10:16 AM 'Rangarajan T.N.C.' via iyer123 < >> [email protected]> wrote: >> >>> It is said that senior citizens over 75 need not file returns. >>> But the fact is that the bank has been mandated to file it for them! >>> >>> Insertion of new section 194P. >>> 47. After section 194-O of the Income-tax Act, the following section >>> shall be inserted, namely:–– Deduction of tax in case of specified senior >>> citizen. ‘194P. >>> (1) Notwithstanding anything contained in the provisions of Chapter >>> XVII-B, in case of a specified senior citizen, the specified bank shall, >>> after giving effect to the deduction allowable under Chapter VI-A and >>> rebate allowable under section 87A, compute the total income of such >>> specified senior citizen for the relevant assessment year and deduct >>> income-tax on such total income on the basis of the rates in force. >>> (2) The provisions of section 139 shall not apply to a specified senior >>> citizen for the assessment year relevant to the previous year in which the >>> tax has been deducted under subsection (1). >>> >>> Explanation.–– For the purposes of this section,–– 52 (a) “specified >>> bank” means a banking company as the Central Government may, by >>> notification in Official Gazette, specify; >>> (b) “specified senior citizen” means an individual, being a resident in >>> India–– (i) who is of the age of seventy-five years or more at any time >>> during the previous year; (ii) who is having income of the nature of >>> pension and no other income except the income of the nature of interest >>> received or receivable from any account maintained by such individual in >>> the same specified bank in which he is receiving his pension income; and >>> (iii) has furnished a declaration to the specified bank containing such >>> particulars, in such form and verified in such manner, as may be >>> prescribed.’. >>> >>> >>> -- >>> You received this message because you are subscribed to the Google >>> Groups "iyer123" group. >>> To unsubscribe from this group and stop receiving emails from it, send >>> an email to [email protected]. >>> To view this discussion on the web visit >>> https://groups.google.com/d/msgid/iyer123/1448616475.1477803.1612327592023%40mail.yahoo.com >>> <https://groups.google.com/d/msgid/iyer123/1448616475.1477803.1612327592023%40mail.yahoo.com?utm_medium=email&utm_source=footer> >>> . >>> >> >> >> -- >> *Mar* >> >> -- >> You received this message because you are subscribed to the Google Groups >> "iyer123" group. >> To unsubscribe from this group and stop receiving emails from it, send an >> email to [email protected]. >> To view this discussion on the web visit >> https://groups.google.com/d/msgid/iyer123/CACDCHC%2BykRaL__Lqp6BWpQriMqGmi%3Day0QQ%3DGYv%2BF5YGoUSCHA%40mail.gmail.com >> <https://groups.google.com/d/msgid/iyer123/CACDCHC%2BykRaL__Lqp6BWpQriMqGmi%3Day0QQ%3DGYv%2BF5YGoUSCHA%40mail.gmail.com?utm_medium=email&utm_source=footer> >> . >> > -- > You received this message because you are subscribed to the Google Groups > "iyer123" group. > To unsubscribe from this group and stop receiving emails from it, send an > email to [email protected]. > To view this discussion on the web visit > https://groups.google.com/d/msgid/iyer123/CAOSW9WsPv-mN%3DT6uK4h-aDaxkfegZ90dwGRorCKKgRv%3DP6T_eg%40mail.gmail.com > <https://groups.google.com/d/msgid/iyer123/CAOSW9WsPv-mN%3DT6uK4h-aDaxkfegZ90dwGRorCKKgRv%3DP6T_eg%40mail.gmail.com?utm_medium=email&utm_source=footer> > . > -- You received this message because you are subscribed to the Google Groups "Thatha_Patty" group. 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