New Delhi: From immediately (Thursday, April 1, 2021) a number of modifications associated to non-public finance have kicked in. As we have entered into a new fiscal yr (2021-22), new provisions concerning the income tax rules are going to control us.
Most of that is due to the Union Budget 2021 announcement that has introduced in a number of modifications in issues of non-public finance.
From April 1, these 5 new income tax rules have come into effect
Pre-filling of returns
Pre-filled returns can be found on the Income Tax portal which had particulars like wage, TDS, tax funds and so forth. prefilled, along with the sooner particulars and to additional ease the tax compliance FM introduced that particulars like capital features from listed securities, dividend income and curiosity from banks, put up workplaces and so forth. will even be prefilled.
Leave Travel Concession
Tax exemption prolonged to money allowances acquired in lieu of LTC, which will be opted by the worker and obtainable for FY 2020-21 solely. Lower of 1 third of the desired expenditure or Rs 36,000 per particular person exempt. Specified expenditure means expenditure on items and providers that are topic to a GST fee of 12% and above and have been bought or procured from GST registered distributors or service suppliers through the interval commencing from October 12, 2020 to March 31, 2021.
Senior Citizens exempted from submitting Income Tax returns
Senior residents above 75 years with solely pension income have now been exempted from submitting the Income Tax returns. A senior citizen is a person resident between the age of 60 to 80 years. Senior residents, relying solely on pension, will not have to file the I-T returns now. To scale back situations of tax harassments of the aged, the federal government has additionally introduced decreasing the time-frame for reopening of income-tax evaluation instances from 6 years to three years. For reopening of significant tax evasion instances as much as 10 years, the federal government has put in a financial restrict of instances involving over Rs 50 lakh in a yr.
Higher TDS for Non-filing of Return by Deductee/Collectee
In order to discourage the apply of not submitting returns by the individuals in whose case substantial quantity of tax has been deducted/collected, it’s proposed to offer that an individual in whose case TDS/TCS of Rs 50,000 or extra has been made for the previous two years and who has not filed return of income, the speed of TDS/TCS shall be on the double of the desired fee or 5%, whichever is larger. This provision shall not be relevant for the transactions the place full quantity of tax is required to be deducted e.g. wage income, cost to non-resident, lottery, and so forth.
Tax on annual provident fund
FM had additionally proposed to tax curiosity earned on annual provident fund contribution of over Rs 2.5 lakh efficient from April 1, 2021. This restriction shall be relevant just for the contribution made on or after April 1, 2021. However, on March 24, FM introduced to boost the restrict for tax exemption on curiosity earned on provident fund contribution by workers to Rs 5 lakh each year in specified instances (the place there isn’t a employer contribution to EPF).
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