Income Tax New Rules: These rules related to income tax are changing from tomorrow, you need to know about them
The new financial year is starting from April 1. The Union Finance Minister Nirmala Sitharaman had announced a change in the income tax rules while presenting the Union Budget 2021. These changes are to come into effect from tomorrow i.e. April 1, 2021. So, let us know what changes are being made in the income tax rules from 1 April.
TDS: Finance Minister has proposed higher TDS (tax deducted at source) or TCS (tax collected at source) rates in Budget 2021 for more people to file Income Tax Return (ITR). Persons who have not filed income tax returns, however, have to deduct TDS or TCS in excess of 50,000 in the last 2 years, subject to a minimum of 5% payment of TDS or TCS.
Senior citizens discount filling ITR: 75 years of age Jyada elderly pensioners in the income tax return (ITR) that went exempted from filing. This facility will be available only to those whose income source is pension.
Tax on PF contribution: In the new fiscal 2021-22, there is a provision of tax under income tax on PF contribution of more than 2.5 lakh rupees. Income taxpayers who earn more than two lakh rupees per month will normally come under this radius.
Pre-filled ITR forms: Individual taxpayers will be given pre-filled income tax returns (ITR). In order to make compliance easier for the taxpayer, details of salary income, tax payment, TDS etc. are already filled in the income tax return. The move is aimed at easing the filing of returns.
LTC Encashment: The period of exemption for employees under the Leave Travel Concession (LTC) voucher is up to 31 March 2021. That is, it will not be taken advantage of from next month.
Option to choose ‘new tax system’ instead of the old tax system: The government introduced the new tax system in the budget 2020 last year. Taxpayers still have until 31 March 2021 to make tax-saving deductions.