Important Changes in Income Tax-Applicable from 1st April 2021

2 minutes, 32 seconds Read

Important Changes in Income Tax-Applicable from 1st April 2021


Pre-filled ITR Forms

Advertisements
Sr. No.ParticularsW.E.F 1st April 2021
1.Pre-filled ITR FormsA 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.

Tax on Interest on PF

Sr. No.ParticularsW.E.F 1st April 2021
2.Tax on Interest on PFInterest earned from the Provident 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.

Penalty for Non-Linking of Aadhar & PAN

Sr. No.ParticularsW.E.F 1st April 2021
3.Penalty for Non-Linking of Aadhar & PANThe Due Date for linking Aadhar and Income Tax PAN is 31st March 2021.

In case of non-linking, your PAN Card would become inoperative.

In case of Non-Linking, you may be Charged a Fine of Rs. 10,000 as per Section 272B of the Income Tax Act.

High TDS/TCS Rate for Income Tax Return (ITR) Non-Filers

Sr. No.ParticularsW.E.F 1st April 2021
4.High TDS/TCS Rate for Income Tax Return (ITR) Non-FilersA 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 Act
● twice 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

Submission of bills under LTC Cash Voucher Scheme

Sr. No.ParticularsW.E.F 1st April 2021
5.Submission of bills under LTC Cash Voucher SchemeTo 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.

No Tax Filing For Senior Citizens Above 75

Sr. No.ParticularsW.E.F 1st April 2021
6.No Tax Filing For Senior Citizens Above 75Persons 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.

Source: ICMAI


Also read other articles @ EduTaxTuber

Rajiv Gandhi Foundation’s (RGF) FCRA licence was Cancelled
The Rajiv Gandhi Foundation's (RGF) FCRA licence was cancelled under Section 14 of the Foreign Contribution (Regulation) Act, 2010 (FCRA, 2010) for violating provisions under Section 11 and registration conditions under Section 12(4)(a)(vi) of the FCRA, 2010. The Rajiv Gandhi …
KVS Recruitment 2022: Vacancies for 13404 Posts, Apply Here
KVS Recruitment 2022: Kendriya Vidyalayas across the country have taken out jobs for teaching and non-teaching staff. Under this, 13,000 posts will be filled. In such a situation, if you are also looking for teaching or non-teaching staff jobs in …
author

EduTaxTuber Team

We are here to help for every updates related to everything...👍📙👍📗

Similar Posts

Leave a Reply

Realme 10 Pro and 10 Pro+ Launched RBI Monetary Policy Highlights England vs Senegal: FIFA World Cup 2022 No Curfew in Mumbai: Section 144 Imposed to ensure Peace Elon Musk suspends Kanye West Twitter Account for inciting violence