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
- Interest earned from the Provident fund is exempt from Income Tax.
- But, recently Budget 2021 has proposed that interest on Employee Contributions to provident fund over Rs. 2.5 Lakh should be taxed.
- This proposal will be applicable w.e.f 1st April 2021.
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.
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
