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BUDGET & THE INVESTOR

Key

announcements

he Union Budget is a the effect of the pandemic.
much-awaited event for all Pre-filled income tax returns: For individ-
sections of the economy – uals, the major highlight of this Budget
businesses, investors, employ- is the steps taken towards increasing the
Tees, the self-employed, etc. convenience of filing income tax
Little surprise that in the run-up to the returns (ITR). It has been proposed that
Budget, hopes run high. The clauses in the ITR form will now have pre-filled
the Budget can have a far-reaching values of capital gains earned on listed
impact on all concerned. securities, interest income, dividend
The Union Budget for 2021 was pre- income, etc., easing the process of tax
sented amid unique and challenging filing for individuals. Also, the time
times. With the pandemic dealing a limit for reopening of income-tax assess-
blow to economies worldwide, this ment has been brought down from six
Budget was expected to provide a suc- years to three years.
cour. By going heavy on spending, the Exemption from filing ITR for senior citi-
government has done just that. The zens above 75 years of age: Senior citi-
Sensex’s jump of over 5 per cent on the zens who are 75 or above and are earn-
Budget day is a testimony to this. ing only through pension and interest
While the Budget has announcements income in a financial year will not need
spanning numerous areas of the econo- to file an ITR. The bank paying out the
my, here we present to you the ones that interest will deduct the applicable tax
impact you as an investor. from their bank accounts.
No tax relief, no tax rise: While there Extension of tax exemption for affordable
aren’t any tax reliefs for individual tax- housing: In order to continue providing
payers in the Budget, the silver lining stimulus to aid the demand in the hous-
is that no additional burden has been ing sector, the finance minister has
passed on to the investors in the form extended the tax holiday, announced in
of a ‘COVID’ cess or a tax increase. It the last Budget, for affordable-housing
was widely believed that some form of projects until March 31, 2022. This gives
tax hike would be there as the govern- an additional deduction of interest pay-
ment needs more resources to counter ment of up to `1.5 lakh to first-time

4 BUDGET & YOU

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