New Rules set to come inforce from 1st April in Income Tax announced by the Union Finance Minister Nirmala Sitharaman on 1st February when presenting the Union Budget come into effect.
What Income Tax rules will changes from 1st April ?
PF tax Rules
Interest on annual employee contributions to PF over Rs 2.5 lakh will be taxed.
Government said that the move is aim at taxing high-value depositors in the EPF.
Finance Minister Nirmala Sitharaman said that Employee Provident Fund is aim at the welfare of workers and if someone earning less than Rs 2 lakh per month will not be affected by the proposal.
Senior citizens exempted from filing ITR
People who are or over the age of 75 with income from pension and interest from FD in the same bank would be exempted from filing the annual ITR.
Finance minister exempted individuals above 75 years from filling ITR.
To make easy compliance burden on senior citizens.
This exemption will be available to only for those senior citizens who do not have other income and they depends on pension and interest income from the bank having there pension account.
The Finance Minister propose higher tax deducted at source for those who are not filing their ITR and announce to tax people contributing above Rs 2.5 lakh annually to the EPF account.
New Sections 206AB and 206CCA in the Income Tax Act has proposed in the budget as a special provision for the deduction of higher rates of tax deducted at source and TCS
And it will be respectively for the non-filers of an income tax return.
Tax exemption to cash allowance instead of Leave Travel Concession had been propose by the government in Budget 2021.
People who are unable to claim their LTC tax benefit due to COVID restrictions on travelling for those this scheme was announce by the government.
Pre-filled ITR forms
Every taxpayers Individual will be given pre-filled Income Tax Returns.
Details of capital gains from listed securities, dividend income, banks interest and post office will also be pre-filled.
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