WHAT’S IN IT FOR CONSUMERS

COMPLYING IS EASIER

Three tax compliance changes stood out. Seniors aged 75 or more won’t need to file IT returns if they have only pension and interest income. Two, income from capital gains, dividends and interest would be available in pre-filled tax forms. On the flip side, the deadline for filing revised and belated returns is down 3 months (Dec 31 of an assessment year)

DEPOSITOR PROTECTION

Depositors can now get access to funds even if the RBI puts operational restrictions on a bank. This will be made possible by amendments to the Deposit Insurance and Credit Guarantee Corporation Act, 1961. The payment would be through deposit insurance and the maximum pay out a depositor would get is ₹5 lakh. The limit was raised 5 times in last Budget

PF EXEMPTIONS LIMITED

Interest on contributions to EPF, Voluntary Provident Fund and exempted PF trusts could now be taxed if your contributions exceed ₹2.5 lakh. Until now, interest earned on contributions to different types of PF was tax-free. If your contribution exceeds ₹20,833 a month, be ready to pay tax on the interest earned on any amount above this limit

MORE TAX CERTAINTY

Period for re-opening of assessment has been reduced to 3 years. Only in cases where there is evidence of hiding income above ₹50 lakh can assessments can be re-opened. In these cases too, they can’t be re-opened after 10 years