Budget 2021: Five takeaways for taxpayers

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Leading up to the Budget, there were huge expectations from Budget 2021. But Finance Minister Nirmala Sitharaman has not provided any relief on the tax front.

But there have been few changes that will impact taxpayers.

Here’s a look at them: — Senior citizens above 75 years have reasons to be overjoyed as those earning from pension and interest income do not have to file IT returns.

— Dividend earned on Real estate investment Trust (REIT) and Infrastructure Investment Trust (InvIT) will not be taxed. Dividend earned on equity will be taxed only after the declaration  or payment of dividend. This is due to the fact that the amount of dividend income cannot be estimated correctly by the shareholders for paying advance tax.

— Tax holiday on interest of home loan for affordable housing gets another extension till FY-22. If you buy a house of up to Rs 45 Lakh and its is your first home then you will get an additional benefit of on interest beyond section 24 of IT act.

— Pre-filled IT returns will have more details now. Apart from salary, tax and TDS details, the form will have capital gains, dividend and details of  your interest income.

— EPF interest income above Rs 2.5 lakh will be taxable from AY 2022-23.