There has been a change in the rules related to income tax in the new financial year (2021-22). Under the new system implemented from April 1, the interest received on deposits of more than five lakh rupees has come under the purview of income tax.
Raipur, New World. There has been a change in the rules related to income tax in the new financial year (2021-22). Under the new system implemented from April 1, the interest received on deposits of more than five lakh rupees has come under the purview of income tax. According to the arrangement till the end of the last financial year, there was no tax on interest earned on the amount deposited in the Provident Fund (EPF) head. In this way, a person used to get tax exemption on investments up to two and a half lakh rupees in EPF and other insurance in a financial year.
EPF has been a great tax saving instrument
The amount deposited in the EPF head and the interest earned thereon were considered completely outside the purview of tax. Now the government has made the interest on PF for an annual contribution of up to five lakh rupees tax-free for a certain category. However, another thing to be noticed here is that if the company does not contribute to the EPF account, then the interest earned on the deposit of Rs 2.5 lakh annually will be tax free.
These subscribers will be affected
This change in the rules related to income tax will have the greatest impact on the taxpayers receiving higher salaries. At the same time, the deadline for filing delayed and return tax returns has now been reduced. It has now been changed to 31 December instead of 31 March. Normally in a financial year, income tax returns had to be filed by 31 July of the next financial year (assessment year) and by 31 March of the following year with late fees. For example, the deadline for filing income tax returns for the financial year 2020-21 is 31 July and income tax returns with late fees could have been filled by 31 March 2022. However, after the change in the rules, this deadline is now reduced to 31 December 2021.
These rules also change
According to the new rules, ULIP linked insurance policy of more than 2.5 lakhs will not get tax exemption. That is, the maturity amount will come under tax if ULIP annual premium is more than 2.5 lakh rupees.
