Budget 2021: Senior citizens above 75 years having only pension will not have to file IT return

New Delhi: Giving relief to senior citizens having only pension and interest income, Finance Minister Nirmala Sitharaman said senior citizens above 75 years having only pension, interest income are not required to file income tax return (ITR).

Further, the FM proposed to extend eligibility of erstwhile tax sop on home loan up to FY22. She proposed that affordable housing projects can avail tax holidays for one more year. Giving a boost to affordable housing, the FM proposed to extend exemption available for the purchase of affordable houses & to provide tax exemption for affordable rental housing projects.

For ease of compliance, dividend payment for REIT and InVIT exempted from TDS. The government proposed to increase threshold for tax audit to Rs.10 crore vs Rs. 5crore (for those transacting 95% digitally).

The FM said a faceless dispute resolution mechanism for small taxpayers will be set up. On dividends, she said advance tax liability on dividends will arise only after declaration. FPI to get a deduction of tax on dividend at lower treaty rate.