India’s Finance Minister recently announced the Union Budget for the financial year 2021-2022. However, there were no significant changes on the income tax part. Yet there were changes made that will ease the compliance for taxpayers.
Below are the 10 changes made in the budget that will ease compliance for taxpayers.
- Other than tax payments, TDS, now details of capital gains, interest from the bank, post office, etc. will come pre-filed to further ease the filing of returns.
- Advance tax liability on dividend income should arise only after declaration/payment of dividend, proposed by the government.
- Now there will be higher TDS for non-filers of income tax returns.
- The government has exempted individuals above age 75 from filing ITR(Income Tax Return).
- There will not be any requirement for furnishing the return of income by a senior citizen for this assessment year.
- Unit Linked Insurance Plans(ULIPs) have made changes under the tax bracket in Budget 2021.
- If an employee exceeds Rs. 2.5Lakhs in a year after 1 April 2021 to provident fund is now taxable.
- Employees can still avail exemption for LTC of one-third of specified expenditure.
- A separate dispute resolution committee to be set-up to reduce litigation for small taxpayers.
- The time limit for filing belated or revised returns are now restricted by 3 months.