6 Changes that will be applicable in Income Tax from 1st April 2021

  • Home
  • 6 Changes that will be applicable in Income Tax from 1st April 2021

CA Pratibha Goyal | Mar 18, 2021 | Views 35494

6 Changes that will be applicable in Income Tax from 1st April 2021

6 Changes that will be applicable in Income Tax from 1st April 2021

Below are 6 major changes that would some in Income Tax with effect from 1st April 2021. Taxpayers should be ready to accept the same. Major Changes are Pre-filled ITR Forms, Tax on Interest on PF, Penalty for Non-Linking of Aadhar & PAN, High TDS/TCS Rate for Income Tax Return (ITR) Non-Filers, LTC Cash Voucher Scheme, Exemption for ITR Filing for Senior Citizens above 75 Years

Pre-filled ITR Forms

  • A major change in ITR Form is expected as, as per Budget 2021 Prefilled ITR Forms 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 Prefiled 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

Penalty for Non-Linking of Aadhar & PAN

  • The Due Date for linking Aadhar and Income Tax PAN is 31st March 2021.
  • In case of non-linking, your PAN Card would become in-operative.
  • 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

  • A new section 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:
    • 5%
    • twice the rate specified in the relevant provision of the Act
    • twice the rate or rates in force
  • Similarly, a new section 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:
    • 5%
    • twice the rate specified in the relevant provision of the Act

LTC Cash Voucher Scheme

The Scheme is as follows:

  • As per amendment employee/his family who has received cash in lieu of travel concession for the block year 2018-21 has incurred expense on any goods or service.
  • [email protected] 12% or more should be applicable on the same.
  • Payment should be made by electronic means
  • An employee is eligible for exemption of Rs 36000 or 1/3 of expenditure whichever is less.

To Avail the benefit of the Scheme, Tax invoices should be deposited by the employee to his employer on or before 31st March 2021.

Exemption for ITR Filing for Senior Citizens above 75 Years

The Exemption is for:

  • Senior Citizens above 75 Years who are Indian Residents
  • They should have only one bank Account
  • They should have only pension and Interest Income



Join Studycafe whatsApp Group