Union Budget 2021-22: Here Are Some Income Tax Changes Every Taxpayer Should be Aware of

Union Budget 2021-22

In the Union Budget 2021-22  presented by Finance Minister Nirmala Sitharaman, no major changes in the income tax slabs were announced. The only revisions were seen in the exemption of senior citizens aged above 75 in case of filing an I-T return or if they are dependent on the pension or interest income. Here are 10 major income tax changes seen in the Union Budget 2021-22 which will affect an individual income taxpayer and how they tend to impact your personal finances:  A Dispute Resolving Committee (DRC) will now be set up to help…

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The Case for Higher Standard Deduction from the Union Budget 2021

Union Budget 2021

January 27, 2021: In July 2019, the finance minister Nirmala Sitharaman had presented her union budget, which was the first Budget of the Second term of the NDA. She had raised the standard deduction of paid employees from to 50,000 from 40,000. What is this standard deduction and why is it important? This deduction is a fixed amount that is deducted from an individual’s taxable income.  It can be done by the government in order to hand more money to the taxpayer, especially after the Covid-related lockdowns, and a significant increase in this…

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Budget 2020-21: 10% TDS on dividend from Mutual Funds

Mutual Funds

Finance Minister Nirmala Sitharaman had scrapped the Dividend Distribution Tax (DDT) in Budget 2020-21. Erstwhile DDT was paid by companies and Mutual Funds on dividend paid to shareholders and unitholders. In place of DDT, the FinMin had proposed to levy a 10% tax deducted at source (TDS) on dividend paid to shareholders or unitholders in case the annual dividend paid was higher than Rs.5000. This change led to confusion about the amount on which this 10% TDS is applicable. It was ambiguous if the 10% TDS applies only to the…

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