It has become easier to get a personal income tax deduction for the purchase of real estate and land

Now Russians can automatically receive a personal income tax deduction for expenses related to the purchase of land, housing, and cottages. This will also affect the cost of building a country house. The simplified procedure was introduced this spring and will be effective from May 21, 2021. You no longer need to file a tax return and present documents as a basis for deduction.

How to get a deduction automatically

The Federal Tax Service reports that this simplification was made possible by the transfer of data by banks and brokers, as well as automation. The FTS system analyzes incoming information from various sources.

If the relevant data is received, a pre-filled application for a deduction is created, which is formed in the taxpayer's personal account. The taxpayer himself receives a message with instructions for further actions.

After receiving the message, he must go to the website of the Federal Tax Service and fill out an application in the prescribed form. The processing time for such requests today is 1 month. Previously, the Federal Tax Service processed applications for 3-4 months. The money will be refunded within 15 days, whereas previously it took 30 days.

One-click deduction

Simplification was made possible by the introduction of technology. Today, various authorities and companies can transmit data, and software systems can analyze information. Checking whether a transaction has been made is also no longer a problem. In the Federal Tax Service, there is less routine work that programs are engaged in today.

At the same time, the procedure can not yet be called perfect, because the taxpayer will still need to wait about 1.5 months for the money to be returned.

But the waiting times were significantly longer before the corresponding changes were made. The standard time for processing applications from citizens was 3 months, and sometimes the process was delayed for 4 months. Checking whether the application was processed was also problematic. Today, a citizen can follow the process in their personal account. He will definitely not miss the moment and react to the situation in time.

The declaration is made automatically, so the taxpayer does not fill it out.

With this approach, errors and typos are excluded, because of which the document may require correction. We can state a partial victory of technology over bureaucracy.

The law on simplifying the procedure for obtaining a tax deduction for relevant needs was signed by Vladimir Putin on April 20, 2021. A month later, it came into force.