The new beginning of the financial year starts
from the 1st of April every year. Every year on April 1, the purchaser's
witness makes some meaningful changes in the Income Tax rules and reforms them.
The Indian Finance Minister, Nirmala
Sitharaman, declared some changes in the rules during the presentation of
Budget 2020-21 in February.
This blog is all about the significant changes
made in the Income Tax April 1, 2021,
Tax
Deducted at Source (TDS):-
The Finance Minister of India presented two
sections and that is 206AB & 206CCA. In the Income Tax Act, 1961, these are
the specific terms for the deduction of more expensive TDS & TCS from those
not filing ITR. The purpose behind the inclusion of sections was to make more
people file ITR.
Provident
Fund Tax Rules:-
The finance minister then proposed the
deadline for tax exemption on interest earned on Provident Fund contribution by
operators to Rs 5 lakh per year in detailed cases as against the proposed Rs
2.5 lakh contribution doesn't involve the employer's contribution.
In the budget 2021, the Indian Finance
Minister raised the exemption over the interest earned on PF is no more
tax-free. However, the interest received over Rs 2.5 lakhs in PF is taxable and
every person in this category must have to pay this.
The
Leave Travel Concession Scheme (LTC):-
LTC stands for Leave Travel Concession. This
system was introduced in the Budget 2021 that provides some relief to the
workers that there will be LTC cash vouchers comparable to the leave travel
concession. This plan was started because no one could travel due to the
Covid-19 pandemic and had to sacrifice their advantages of LTC Tax. The scheme
was published by the center last year for people who were not able to claim LTC
tax benefits due to the Covid-19 related limitation.
To avail of this extra benefit, the worker
must submit a comprehensive bill including the GST Registration Number of the vendor, GST
(Goods and Services Tax) amount to the employer (provided the employer is
offering the scheme).
ITR
Filing exemption for Senior citizens above 75 years:-
The finance minister had released people above
75 years from filing the ITRs. The exemption will be available to only those
elder civilians who have no other revenue but depend on pension or interest
income from the bank. Budget 2021 provides relaxation to elder citizens above
the age of 75 years. The persons who are above 75 years are not needed to file
ITR. The bank will deduct the price that the person is supposed to pay the
Government. This implements only to the senior citizen who earns revenue from
their pension or the Fixed Deposit interest in the bank.
Pre-filled
ITR forms:-
The Budget 2020-21 presented the concept of
pre-filled ITR forms for all varieties of income earned out of Capital Gains
from Listed Securities, Dividends, etc. Earlier, these forms were prepared only
for the income earned from salary under Section 16 of the Income Tax Act,
1961[1]. The forms were started with the aim to make people file ITR at ease.
Penalty
for Non-Linking of Aadhar & PAN:-
Budget 2021 made it necessary to link Aadhar
& PAN and the due date to link the same is 31st March 2021. The Permanent
Account Number would become inoperable from 1st April 2021, if not linked with
the Aadhar. Following Section 272B of the Income-tax Act, 1961, punishment of
Rs. 10,000 will be levied if it declines to comply with the above provision.
Conclusion:-
These are some major changes in the income tax
rule that happened on the 1st of April, you must be aware of these rules for
our knowledge. These rules are beneficial for the taxpayer and our country.
