Significant Changes In Income Tax That Would Come With Effect From 1st April 2021. The new financial year is going to start from 1 April. The government has planned some major changes for this financial year (2021). In the Budget 2021, Finance Minister Nirmala Sitharaman did not give any relief to the middle class and salary class in income tax. But those who are more than 75 years of age, they were relieved from filing income tax returns this time.
With this, it has been decided to take strict action against those who do not file income tax returns. All these changes will come into effect from 1 April 2021.
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.
Changes In Income Tax Come With Effect From 1st April 2021
|S.no||Particulars||W.E.F 1st April 2021|
|1.||Pre-filled ITR Forms||A major change in ITR Form is expected as per Budget 2021 (Pre Filed ITR) will be introduced. The Prefilled ITR Forms will have information of Capital Gains from Listed Securities, Dividend Income, Interest from Banks/Post Office, etc. Earlier Pre-filed ITR form was available for Salaried employees where Income was reflected on basis of Form 16, but now the scope has become wide.|
|2.||Tax on Interest on PF||Interest earned from the Providend fund is exempt from Income Tax. But, in Budget 2021 has proposed that Interest on Employee Contributions to Providend fund over Rs. 2.5 lakhs should Taxable.|
|3.||Penalty for Non-Linking of Aadhar & PAN||The Due Date for linking Aadhar and Income Tax PAN is 31st March 2021. In case of non-linking, your PAN Card would become in- operative. In case of Non-Linking, you may be Charged a Fine of Rs. 10,000 as per Section 272B of the Income Tax Act. link pan with aadhaar|
|4.||High TDS/TCS Rate for Income Tax Return (ITR) Non-Filers||A new sec 206AB has been inserted in Income Tax Act as a special provision providing for higher rate for TDS for the non-filers of income tax return (ITR). The Proposed Rate on Non-Filer is higher of the following: 5%twice the rate specified in the relevant provision of the Acttwice the rate or rates in force Similarly, a new sec 206CCA has been inserted in Income Tax Act as a special provision providing for higher rate for TDS for the non-filers of income tax return (ITR). The Proposed Rate on Non-Filer is higher of the following: 5%twice the rate specified in the relevant provision of the Act|
|5.||Submission of bills under LTC Cash Voucher Scheme||To avail the tax benefit under the LTC Cash Voucher Scheme, ensure that required bills in the correct format containing GST amount and GST number of the vendor have been submitted to your employer (provided the employer is offering the scheme) on or before March 31, 2021. As per the scheme, an employee is required to spend three times the amount deemed as LTA fare on goods and services attracting GST of 12% or more.|
|6||No Tax Filing For Senior Citizens Above 75||Persons whose age is above 75 years and who has pension income and interest from fixed deposit comes in the same bank and who has only interest income, they need not file income tax return. Bank will deduct the income tax which he has to pay and deposit to the government. The condition is the person should have only pension income and interest from fixed deposit should accrue in the same bank.|
Relief to Super Senior Citizens
Will the TDS rule also apply to Super Senior Citizens? Regarding this, Pankaj Mathpal (Managing Director of Optima Money Managers) says that from 1 April 2021, senior citizens above 75 years of age will not have to file ITR. This exemption has been given to those senior citizens who are dependent on pension or interest on fixed deposits.
The first law of income tax in the country came 160 years ago. The first budget was presented in 1860 by British officer James Wilson. Income tax law was added to this. In the first budget of the country, income tax rebate was given to those earning an annual income of up to 200 rupees. The Income Tax Act of 1961 is currently in force in the country. It is amended from time to time.