Capital gain tax: In order to entice investors to startups, tax holiday on capital gains has been extended for 1 year.
Taxpayers had high expectations from Budget 2021, but no major relief has been announced for them. However, tax relief has been given for one year on capital gains. Tax holiday on capital gains has been extended for 1 year to entice investors to startups. Apart from this, the tax holiday for startups has been extended for one year. Now its deadline has been extended till 31 March 2022. Earlier this deadline was ending on 31 March 2021.
Startup India was launched by PM Modi in 2016. Through this program, he has tried to increase entrepreneurship. Startups recognized by DPIIT get a tax benefit. Startups have a tax holiday for 3 years over a period of 7 years. According to the Economic Survey report, there are 41061 government-approved startups in the country. Of these 39,000 startups employ 4.7 lakh people. Capital gains are taxed in two ways. Short Term Capital Gain (STCG) for 12 months. After that comes Long Term Capital Gain (LTCG). Currently, LTCG is not taxed till 1 lakh. After that, tax has to be paid at the rate of 10 percent. Short-term capital gains are currently taxed at 15 per cent.
75 years taxpayers relief
Apart from this, another finance minister for taxpayers Nirmala Sitharaman said that people above the age of 75 years are no longer required to file returns. Only those people whose income is only from pension can benefit from this system. Tax will be deducted in their income itself.
Taxpayers relief on home loan too
The government has given big relief to home buyers. This will accelerate the real estate sector. Nirmala Sitharaman has extended the limit of additional exemption up to 1.5 lakh on interest under section 80EEA for one year. Now this scheme can be availed by 31 March 2022. Earlier, the deadline for this scheme was ending on 31 March 2021. Explain that the government had brought section 80EEA in the budget 2019 for affordable housing. Under this, a rebate of Rs 1.5 lakh on interest repayment is available separately. This exemption is different from section 24B. Interest repayment of home loan for section 24B gets a rebate of 2 lakh rupees every financial year. The government has not made any change in the definition of affordable housing even in this budget. Affordable housing has been categorized by the government on the basis of the carpet area and the price of the house. There is a benefit under Section 80C on the principal amount of home loan repayment.
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