Union Budget 2021: Changes in Finance Bill individual taxpayers should know

The Finance Bill has proposed the following changes for taxpayers in 2021:

  • Interest income over ₹2.5 lakhs on an employee’s contribution to EPF will be taxable at withdrawal.
  • Estimating dividends while making advance payments will not be required anymore
  • Income from Unit Linked Insurance Plan(ULIP’s) issued on or after February 1, 2021will be taxable as capital gains if the premium amount is more than ₹2.5 lakhs in a year.
  • Senior citizens aged 75 years or above who have only interest income and pension income are not required to file an income tax return.
  • Pre-filled income-tax returns will now also include details of capital gains from listed securities, dividend income, interest from banks, post office, etc.
  • Tax exemption for affordable housing further extended by 1 year.
  • DRC to be set up for taxable income of up to Rs 50 lakh, and disputed income up to Rs 10 lakh.

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