Important takeaways from Union Budget 2021 for taxpayers, salaried class

To boost the purchase of an affordable house, the Union Budget 2021 proposed to extend the eligibility period for the claim of an additional deduction for the interest of Rs 1.5 lakh paid for a loan taken for the purchase of an affordable house to March 31, 2022. 

In order to incentivise home buyers and real estate developers, the Union Budget 2021 has proposed to increase safe harbour limit from 10 per cent to 20 per cent for the specified primary sale of residential units. 

Delay in the deposit of the contribution of employees towards various welfare funds by employers results in permanent loss of interest/income for the employees. In order to ensure timely deposit of employees’ contribution to these funds by the employers, the Budget has proposed that the late deposit of employees’ EPF contribution by the employer shall never be allowed as an income tax deduction to the employer. 

It was also proposed to provide tax exemption to the amount given to an employee in lieu of LTC subject to incurring specified expenditure. This means the Cash Voucher Scheme launched for the central government employees has been now extended to all earning individuals.

In order to provide relief to taxpayers, advance-tax liability on dividend income shall arise only after the declaration/payment of dividend. The dividend paid to Real Estate Infrastructure Trusts or Infrastructure Investment Trusts (REIT/InvIT) shall be exempt from TDS.