Income Tax Rule Change: Some new rules related to income tax and salary affecting the common man are set to change from April 1. These changes can affect many people on the common man. These include rules related to contribution to EPF, DA, LTC voucher for ITR filing and income tax. There is a provision of tax on PF deducting more money from 1 April. According to the announcements made in the budget, those above 75 years of age were relieved from filing income tax returns. So at the same time, it has been decided to take strict action against those who do not file income tax returns. All these changes are due from April 1, about which the budget was announced in 2021. Know about the major changes… ..
1. Tax on EPF contribution
According to the new rules of income tax, from April 1, 2021, you will have to pay tax on the interest which will be earned as interest on making PF contribution of more than 2.5 lakh rupees annually. Employees who have higher income cannot save more tax through PF contribution, hence Finance Minister Nirmala Sitharaman announced it. However, the monthly salary of 2 lakh rupees will not affect this rule.
2. Action on not filing ITR
The central government has tightened the TDS rules to encourage the filing of ITRs. For this, the government has added section 206AB to the Income Tax Act. According to the new rule, if the ITR is not filed, double TDS will have to be paid from April 1, 2021. According to the new rules, tax collection at source (TCS-TCS) will also be higher on those who have not filed income tax returns.
According to the new rules, from 1 July 2021, the Penal TDS and TCL rates will be 10–20 per cent, which is usually 5–10 per cent. For those not filing ITR, the rate of TDS and TCS will be doubled to 5 per cent or fixed rate, whichever is higher.
ITR Filing: New provision, TDS will be doubled if ITR is not filed
3. LTC
The Central Government had announced an 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 coronavirus.
4. Discount to Senior Citizens
Senior citizens above 75 years are exempted from filing ITR. To reduce the compliance burden on senior citizens, Finance Minister Nirmala Sitharaman, while presenting Budget 2021, exempted those above 75 years from filing income tax returns (ITR). This exemption has been given to those senior citizens who are dependent on pension or interest on fixed deposits.
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5. Pre-Field ITR Form
Individual employees will now be provided with a pre-field ITR form from April 1, 2021, for the convenience of employees and to simplify the process of filing income tax returns. This will make it easier to file ITR.
Note: Apart from this, if the new wage code is implemented, the basic salary in your CTC should be 50 percent or more. With the introduction of new rules, your CTC may increase along with your basic salary. At the same time, in some reports, this medicine is being done that the DA of the central employees can also be increased.