A new financial year is starting from April 1. Many rules will be changed in the new financial year, whose change will affect your everyday life. There will be a big reshuffle in everything from tax to banks merger. The direct impact of which is going to be on the common man.
The central government is promoting ITR filing. The government has made a new rule that those who do not file ITR will have to pay double TDS. The government has added section 206AB to the Income Tax Act. According to this section, if the ITR is not filed now, double TDS will have to be paid from April 1, 2021. Let us tell you that 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.2. Option to choose New Income Tax Regime
In the Budget 2020-21, the government introduced a new income tax regime with alternative rates and slabs, which will come into effect from the new financial year starting April 1. There will be no benefit of any rebate and deduction in the new tax system. However, the new tax system is optional i.e. if the taxpayer wishes, he can pay income tax also according to the old tax slab. At the same time, under the new tax proposal, no tax has to be paid to those with an annual income of Rs 5 lakh.
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3. Tax relief to people above 75 years of age
In the budget, the Finance Minister announced that people over 75 years have been given relief from tax. That is, from 1 April 2021, people above the age of 75 years will not have to file tax. Explain that this exemption has been given to those senior citizens who are dependent on pension or interest on fixed deposits.
4. PF Tax Rules
Finance Minister Nirmala Sitharaman announced in the budget that if she invests more than 2.5 lakh rupees in a PF account in a year, her interest will be taxed. This means that in a financial year, you will get the benefit of tax rebate on a contribution of only 2.5 lakh rupees in the provident fund. This will only apply to the contribution of the employees, not the contribution of the employee (company). Actually, the employees should save tax by depositing more money in PF because till now the interest of PF was outside the purview of tax.
5. Pre-filled ITR Forms
Individual taxpayers will be given pre-filled income tax returns (ITR). To make compliance easier for taxpayers, the salary income, tax payment, TDS, etc. details will already be filled in the income tax return. For ease of filing returns, details of capital gains, dividend income from listed securities, and interest from banks, post office etc. will also have to be pre-filled.
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6. Bill submission under LTC Cash Voucher Scheme
The last date for taking tax benefit under LTC Cash Voucher Scheme is 31 March 2021. Taxpayers will have to submit the necessary bills to their institute by March 31 to get the benefits. It is necessary to have the amount of GST in the bill and the GST number of the vendor. To avail benefits under LTC Cash Voucher Scheme, an employee has to spend three times the LTA fare in 12% and above services or goods with GST.