Income Tax Rules 2021: Union Finance Minister Nirmala Sitharaman had announced a change in the Income Tax Rules while presenting the Union Budget 2021 (Budget 2021). These changes are to come into effect from 1 April 2021. As per the new rules, senior citizens aged 75 years and above will be exempt from income from pension and interest from fixed deposits in the same bank from April 1 by filling ITR. In addition, the finance minister proposed higher TDS (tax reduction) for those who are not filing their ITRs and levying tax on those who contributed more than 2.5 lakhs annually to the EPF account. has announced. Let’s take a look at 5 such income tax changes that will come into effect from April 1:
Pf tax rules
Annual employee contributions to more than 2.5 lakh provident funds will be taxed from April 1, 2021. The 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 provide welfare to 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, the interest rate of TDS on bank deposits will be doubled. This means that if a person 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 citizens above 75 years of age are exempted from filing ITR
To reduce the compliance burden on senior citizens, Finance Minister Nirmala Sitharaman, while presenting Budget 2021 (bUDGET 2021), exempted citizens above 75 years of filing income tax returns (ITR). This exemption will be available only to those senior citizens 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
Individual taxpayers will be given pre-filled income tax returns (ITR). To make compliance easier for taxpayers, the salary income, tax payment, TDS, etc. details will already be filled in the income tax return. For ease of filing returns, details of capital gains, dividend income from listed securities, and interest from banks, post office etc. will also have to be pre-filled.
Travel leave concession
The Central Government had announced 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 corona virus.
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