Home Economy Union Budget 2021: Here’s all about relevant changes introduced for salaried taxpayers

Union Budget 2021: Here’s all about relevant changes introduced for salaried taxpayers

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New Delhi: Union Finance Minister Nirmala Sitharaman has not introduced any change within the earnings tax slab charges for the salaried class within the Union Budget 2021, although a few of her announcement on direct taxation will have an effect on particular person tax payers.

FM Sitharaman, presenting the Union Budget 2021 has introduced some related modifications for salaried taxpayers starting from tax on PF to pre-filled earnings tax varieties to additional extension of Sops for reasonably priced Housing sector.

Interest accruing on Employee’s Provident Fund on worker contribution: Interest accruing on Employee’s Provident Fund on worker contribution exceeding Rs 2,50,000 each year from April 1, 2021 will likely be taxable.

Leave Travel Concession: Tax exemption prolonged to money allowances acquired in lieu of LTC, which will be opted by the worker and accessible for FY 2020-21 solely. Lower of 1 third of the required expenditure or Rs 36,000 per individual exempt. Specified expenditure means expenditure on items and companies that are topic to a GST fee of 12% and above and have been bought or procured from GST registered distributors or service suppliers throughout the interval commencing from October 12, 2020 to March 31, 2021.

Pre-filling of returns: Pre-filled returns can be found on the Income Tax portal which had particulars like wage, TDS, tax funds and so forth. prefilled, along with the sooner particulars and to additional ease the tax compliance FM introduced that particulars like capital beneficial properties from listed securities, dividend earnings and curiosity from banks, publish places of work and so forth. can even be prefilled.

Sops for reasonably priced Housing prolonged until March 2022: The Finance Minister proposed to increase the eligibility interval for declare of further deduction for curiosity of Rs. 1.5 lakh paid for mortgage taken for buy of an reasonably priced home to thirty first March, 2022.  In order to extend the provision of reasonably priced homes, she additionally introduced extension of eligibility interval for claiming tax vacation for reasonably priced housing initiatives by yet one more 12 months to thirty first March, 2022.  For selling provide of reasonably priced rental housing for the migrant employees, the Minister introduced a brand new tax exemption for the notified reasonably priced rental housing initiatives. 

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Delayed deposit of Employee’s share of PF contribution to be added to the taxable earnings of the Employer: FM proposed so as to add worker’s share of PF contribution as an earnings to employers, offered the employers don’t deposit the mentioned quantity in time. 

Commenting on taxable earnings of employer if there’s delayed deposit of Employee’s share of PF contribution Dharmendra Chachan, Partner at Chachan and Lath LLP mentioned, “This will ensure that there is no loss of interest for the employees on such contribution and increase surety of getting their PF money.”  

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