Five New Income Tax Rules from FY 2021-22, it is important for you to know

 

Income Tax Rules 2021: Union Finance Minister Nirmala Sitharaman had announced the change in income tax rules while presenting the Union Budget 2021. These changes are to come into effect from April 1, 2021. As per the new rules, senior citizens aged 75 years and above will be exempted from filing ITR from April 1, 2021, with income from pension and interest from fixed deposits in the same bank. In addition, the Finance Minister proposed higher TDS for those who are not filing their ITRs and announced taxation of those who contributed more than 2.5 lakhs per annum to the EPF account. Let's take a look at 5 such income tax changes that will come into effect from April 1, 2021.

 

PF Tax Rules:

 

An annual employee contribution to a provident fund of more than 2.5 lakh ₹ will be taxed from April 1, 2021. The central government said that the move is aimed at taxing high-value deposits in Employee Provident Fund (EPF). Finance Minister Nirmala Sitharaman said that the purpose of EPF is to welfare the workers and no person who earns less than ₹ 2 lakh per month will be affected by the proposal.

 

TDS:

 

If a person does not file Income Tax Return (ITR) from April 1, 2021, the interest rate of TDS on bank deposits will be doubled. This means that if a taxpayer does not come in the Income Tax Outgo Slab and does not file ITR, then the rate of TDS on him will be doubled.

 

Senior Taxpayers over 75 years old are exempted from filing ITR:

 

To reduce the compliance burden on senior citizens, Finance Minister Nirmala Sitharaman, while presenting Budget 2021, exempted taxpayers above 75 years from filing income tax returns (ITR). This exemption will be available only to those senior taxpayers who do not have any other income but are dependent on pension and interest income from the bank hosting the pension account.

 

Pre-Filled ITR Forms:

 

An Individual taxpayers will be given pre-filled income tax returns (ITR). To make compliance easier for taxpayers, the salary income, TDS, tax payment, etc. details will already be filled in the income tax returns. For ease of filing ITR returns, details of capital gains, dividend income from listed securities, and interest from the post office, banks etc. will also have to be pre-filled.

 

Travel Leave Concession:

 

The Central Government had announced an exemption in Travel Leave Concession (LTC) scheme due to COVID-19. Travel Leave Concession (LTC) Cash Voucher Scheme will be implemented in the new financial year. The government announced plans last year for those who did not take advantage of the LTC tax benefit due to restrictions on travel due to the coronavirus.