The annual union budget is like packaged candy for a crying baby. And unless it’s very obvious, wrapped candy is the expected budget reform, and the crying baby is the economy. This year, the baby was crying quite loudly, and while the whole nation was already expecting candy, it was expecting it to be bigger in size and sweeter in taste.
The cove-hit economy, which was already in full swing, was waiting to see a ray of hope with the budget. Markets were delighted with the record-breaking opening as well as some were dissatisfied.
The budget has implemented a number of plans for various sectors, including health, agriculture and taxes. And so it’s important to understand how it will affect you and your finances.
As a taxpayer, investor and consumer, are you not interested in knowing what budget you have?
You may also, like- Prepare at a time 50 Employees Automated Income Tax Form 16 Part B for the F.Y.2020-21as per new and old tax regime U/s 115 BAC
What the budget contains for taxpayers, investors and consumers:
For taxpayers:
Below are some IT things to keep in mind when filing your IT return.
Senior Citizens - 2021-22 the budget has come as a relief for senior citizens. Anyone above the age of 65 years on the basis of pension and interest is not required to file an income tax return. However, any other source of income including mutual fund, equity, etc. must file a return.
Starting 2021-22, those who have PAN card but do not file ITR will have to pay a higher tax deduction from the source. Earlier, only those who did not have a PAN card were asked to make such payments.
If the employee's contribution as EPF is more than two and a half lakhs, interest will be levied on his interest. It has been introduced to protect rich people from going away from paying taxes. This applies to both statutory and voluntary PF.
You may also, like- Prepare at a time 100 Employees Automated Income Tax Form 16 Part B for the F.Y.2020-21as per new and old tax regime U/s 115 BAC
File ITR
The following are some of the points or pointers that were discussed in this session on ITR filing:
Those who are filing later than scheduled or want to correct errors should be careful. This is mainly because the time allotted for it has been reduced to F.Y 2020-21. Thus, exceeding the stipulated time may invite fines or additional payments.
IT tax authorities and budgets like this are taking important steps to make the entire ITR filing easier and hassle-free. One such effort to promote hassle-free tax filing is the introduction of pre-filled income tax forms. These forms will contain details of your capital gains, interest earnings, dividends, investment details, etc. This is a big step in preventing tax evasion.
In order to assist the tax authorities in resolving the Authorities tax expeditiously, the period during which you can re-open the assessment under the income tax return has been reduced from 6 years to 3 years. However, 10 years will be when the income is concealed 50 lakhs or more.
You may also, like- Prepare at a time 50 Employees Automated Income Tax Form 16 Part A&B for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC
For investors:
Here are some things investors should be aware of:
An investment charter is expected to be drafted to reduce se-misalignment and the government can further explain the details.
Infrastructure The government is keen to improve various infrastructure-based projects. For this, they have planned to raise the necessary funds from the debt market. As a result, about Rs 12 lakh crore will be taken. It has attracted the attention of many investors for its short-term debt fund. Also, tax-efficient zero-coupon bonds will remain open for investment from 2021.
The budget avenue that is seen as a good prospect with this budget is a gold-based investment. FM said tariffs on gold and silver would be reduced from 12.5 per cent to 7.5 per cent.
In Ulips or unit-linked insurancepolicies, where you exceed the annual premium of 2.5 million, you will now be taxable under Long Term Capital Gains (LTCG). This taxation will apply to any purchases made on or after February 1, 2021. This measure is expected to affect HNIs or high-value individuals. However, the money received by the dependents of the deceased will be waived.
The new system enacted in the 2021-22 budget will enable not only liquidity of banks but also increased deposit insurance facility when banks face problems.
You may also, like- Prepare at a time 100 Employees Automated Income Tax Form 16 Part A&B for the F.Y.2020-21 as per new and old tax regime U/s 115 BAC
For customers:
For consumers, the budget has put various things on the table with the aim of encouraging the “Make in
In addition, among other things, the budget has extended the term of about one and a half lakh additional discount claimants for loans taken to buy a house.
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