Budget 2021 Key highlights. The Finance Minister of India has presented the Union General Budget 2021-22 in Parliament today. Please note that there has been no change in the personal income tax structure.

Effective from the fiscal year 2020-21, individual tax assessors have the option of availing new tax slab rates by carrying existing income tax exemptions and concessions such as HRA, Section 80C, home loan tax facility, etc.

Thus, in order to take the new tariff measures below the new tax, the taxpayers will have to waive the income tax exemption.

The same income tax slab (new) structure will continue in F.Y 2021-22. 

People who are reluctant to pay taxes under the new lower personal income tax will have to cancel almost all the tax breaks that you are claiming in the old tax structure.

 

Thus, all exemptions (IB, 80-IBA, etc.) under Chapter VIA will not be claimed by those who pray for the new tax discipline. 

If you want to claim your own IT exemption and exemption, your income will be taxable according to the existing (FY 2019-20) income tax slab rate (as below); 

2021-22 Budget and Personal Finance: Key Highlights

Below are the latest personal finance proposals in Budget 2021-22; 

Elderly citizens aged 75 years and above who have only bank/post office pension and interest income are not required to file an income tax return. Although banks will waive the applicable duty. The conditions for exemption from filing ITR from April 1, 2021, are:

o The senior citizen should be a resident and be 75 years of age or older in the financial year for which tax is payable

o He must earn a pension and interest income from the same bank.

o Only certain banks are allowed for this purpose.

o An announcement has to be made to the bank in this regard.

An additional income tax exemption of Rs 2.5 lakh on Able Affordable Loans will be extended for one more year, u / s 80EEA. An interest rebate of Rs 1.5 lakh (Sec 80EEA) will be increased for the loan taken till March 31, 2022. This discount cannot be claimed if you choose a new tax slab.

Cap capital gains (long term and short term), dividend income and interest income details pre-filled in income tax return forms.

• Employee contributions (e.g. EPF / Supervision) not paid by the employer will not be allowed a tax deduction for the employer.

Tax Income Tax Appeal Tribunal to be faceless - only electronic communication will be done.

 

RIIT and invitees will not impose any TDS on dividend payment. However, this national income is still a taxable income.

Some rules and guidelines will be enacted to change the rules of double taxation and remove the income tax burden of NRIs, especially those returning to India.

Protection to protect investors, investor charters should be introduced as a right of all financial investors across all financial products. 

For EPF / VPF (Employee Contribution only) no more than Rs. 2.5 Lack

o If the contribution of the employees is more than Rs. 2.5 Lack

An example - if the employee shares, EPF VPF FY 2021-22, Rs.4.5 Lack is an additional Rs.2 lakh rupees (Rs.4.5 Lack – Rs.2.5 Lack) interest earned will now be taxable.

 

If the annual premium of ULIP is more than Rs.2.5 Lack, then maturity is no longer duty-free. (New ULIPs have been purchased from February 21, 2021, however, the death benefit is tax-free)

Download Automated Income Tax Revised Master of Form 16 Part B for the Financial Year 2020-21 with new and old tax regime U/s 115 BAC.

 

Main Feature of this Excel Utility Are-

 

# This Excel Utility can prepare at a time 50 Employees Form 16 Part B as per the New and Old tax regime U/s 115 BAC

 

# This Excel Utility have all Income Tax Sections as per the Budget 2020

 

# This Excel Utility can prevent the double entry of employee’s Pan Number

 

# Easy to install and easy to generate just like an Excel File

 

On February 24, 2021 by www.taxexcel.net

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 Exemption for LTC Money Plan Budget 2021| Under the current courses of action of the Act, stipulation (5) of section 10 of the Act obliges exemption in respect of the assessment of movement concession or help got by or due to a specialist from his chief or past administrator for himself and his family, with respect to his strategy on leave to any place in India. Considering the condition arising out of the erupt of COVID pandemic, it is proposed to give tax exemption to exchange stipend out lieu of LTC.

 

Subsequently, it is proposed to insert the second specification in stipulation 5 of section 10, to give that, for the evaluation year beginning the principal day of April 2021, the motivator in lieu of any movement concession or help got by, or due to, an individual shall in like manner be acquitted under this explanation subject to satisfaction of conditions to be prescribed.

You may also, like- Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21 [This Excel Utility can prepare at a time 50 Employees Form 16 Part A&B]

 

It is in like manner proposed to clarify through a Clarification that where individual cases and is allowed exemption under the subsequent specification with respect to prescribed use, no exemption shall be allowed under this condition in respect of same prescribed utilization to some other.

 

The conditions, consequently, shall be prescribed in the Annual tax Rules in due course and shall, bury alia, be as under:

 

(a) The agent activities opportunities for the considered LTC confirmation in lieu of the proper LTC in the Square year 2018-21;

 

(b) Decided expenditure‖ infers utilize brought about by an individual or his relative during the predefined period on product or organizations which are committed to tax at an absolute speed of twelve percent or above under various GST laws and items are purchased or benefits acquired from GST enrolled dealers/expert associations;

You may also, like- Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21 [This Excel Utility can prepare at a time 100 Employees Form 16 Part A&B]

 

(c) Decided period‖ infers the time span starting from the twelfth day of October 2020 and completing on 31st day of Walk 2021;

 

(d) the the proportion of exemption shall not outperform 36 thousand rupees for every individual or 33% of decided use, whichever is less;

 

(e) The portion to GST enrolled vendor/expert centre is made by an account payee check is drawn on a bank or records payee bank draft or use of electronic clearing structure through a record or through such other Electronic mode as prescribed under Standard Chapter V-I and a tax receipt is procured from such dealer/expert centre;

 

(f) If the whole got by, or due to an individual as per the arrangements of his work, from his supervisor tantamount to himself and his family, for the LTC, is more than what is reasonable to such individual under the above-discussed courses of action, the exemption under the proposed change would be open just to the level of exemption passable under above-recorded plans.

 

This correction will create results from first April 2021 and will, apply relating to the the appraisal year 2021-2022 specifically.

Download Automated IncomeTax Revised Form 16 Part B for the F.Y.2020-21 [This Excel Utility can prepare at a time 100 Employees Form 16 Part B]

Main Feature of this Excel Utility:-

# This Excel Utility Prepare at a time 100 Employees Form 16 Part B as per the New and Old Tax Regime U/s 115 BAC

 

# This Excel Utility can prevent the double-entry of  Employees Pan Number automatically.

 

# Automatic Convert the Amount to In-Words without any Excel Formula.

 

# All the Income Tax Amended Section has in this Excel Utility as per the Income Tax Act. 1961.

# This Excel Utility can use both of Government and Non-Government Concerned.

# Easy to generate just like as an Excel File.

 

On February 07, 2021 by www.taxexcel.net

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