5 Income Tax Changes Every Taxpayer Should Know

7 Feb, 2021 11:00 IST|Sakshi Post

Union Finance Minister Nirmala Sithraman presented the Union Budget 2021-22 in the Parliament on 1st February.

Sitharaman confirmed that the senior citizens who receive pension and are also dependent on interest income, will not have to pay income tax. The senior citizens who are of 75 years and above will receive this exemption. But there was no such exemption for other age groups or the middle class people.

Here are the 5 important income tax changes that every taxpayer should know

1. Things will become a little easier for the taxpayers as now the Income Tax Returns (ITR) will be pre-filled. Every individual taxpayer will receive some aid in the filing of returns.

2. Leave Travel Concession (LTC) cash Voucher scheme was confirmed. This is for everyone who could not claim their LTC tax benefit due to COVID-19 and travel limitations.

3. Finance Minister Sithraman spoke on the EPF contributions. From April 2021, the interest on the Employees provident fund that is above Rs 2.5 lakh per annum would be taxed.

4. During the presenting of the Budget, a new provision, Section 206AB was introduced in the Income Tax Act. This act is for the higher rate for tax deducted at source (TDS) for the non-filers of income tax return.

5. The senior citizens who receive pension and are also dependent on interest income, will not have to pay income tax. The senior citizens who are of 75 years and above will receive this exemption.

Apart from income tax related revelations, something for the gold and silver buyers was announced as well. The government is currently levying an import duty of 12.5 percent on gold. However, Union Finance Minister Nirmala Sitharaman said in the budget that the tariff would be reduced from 12.5 percent to 7.5 percent.

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