Budget 2021: The Finance Ministry will soon provide the already filled Income Tax Return (ITR) form for the taxpayers. There will also be details of mutual funds, shares, dividend income and interest in the form. In the new ITR form, the income details will be pre-filled.
New Delhi. To simplify the process of filing income tax returns, soon the Finance Ministry will provide the pre-filled ITR form to the taxpayers. Finance Minister Nirmala Sitharaman gave this information during the budget speech on Monday. The Finance Minister said that the Finance Ministry will provide pre-filled Income Tax Return (ITR) forms for taxpayers. There will also be details of mutual funds, shares, dividend income and interest in the form. In the new ITR form, the income details will be pre-filled.
Last year, the government amended the Income Tax Act through a finance bill. Through this amendment, the government was allowed to get information about financial transactions related to taxpayer’s bank, broker, depositor. In addition, TDS will be deducted from mutual funds and shares in the form of dividend over Rs 5,000, details of which will be obtained from 26A. This will help in the pre-filling return form.
Currently, taxpayers can download the pre-filled form from their PAN number. It contains your personal details, tax paid by you and the details of the bank account.
Apart from this, taxpayers will have two options to file income tax returns as in the previous year. Now you will not have to pay advance tax on the dividend income.
No change in income tax slab
There is no change in the income tax slab in the general budget. However, the Finance Minister has announced relief in the income tax return filing for the elderly over 75 years of age. Finance Minister Nirmala Sitharaman has made a big announcement in this budget for senior citizens. According to this, now pensioners over 75 years of age will not have to pay income tax.
In the budget, the Finance Minister has announced that it is proposed to constitute a Dispute Resolution Committee to further reduce litigation for small taxpayers. This will ensure transparency. Individuals with taxable income up to Rs 50 lakh and disputed income up to Rs 10 lakh will be eligible to go before this committee.