Personal Taxes

Union Finances 2021-22: Private Earnings Tax Checks to Look For

NEW DELHI: Finance Minister Nirmala Sitharaman announced the Union budget for 2021-22 on Monday. While the government has left the tax plates unchanged, taxpayers will find some relief in managing their personal finances. However, this does not apply without restrictions.
Here is a list of the personal income tax checks to watch out for:

  • An exemption from filing income tax returns for senior citizens (75 years or older) is not possible if the person has more than one bank account or income other than pension and bank interest.
  • A gap of up to 20% between the stamp tax value and the sales consideration is only permitted for the initial allocation of a residential unit between November 12, 2020 and June 30, 2021. In all other cases (e.g. buying a house from an existing owner) the current deviation limit of 10% continues to apply.
  • The LTC cash system is only valid for the 2020-21 financial year. No tax benefit is available on LTC for goods or services purchased after April 1, 2021.
  • It is unclear whether EPF interest is taxable even if the employee’s contribution was more than 2.5 lakh before April 1, 2021, but interest on such earlier contributions is due after April 1, 2021.

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