Look at the major changes to the income tax from April 1, 2021. With Automated Income Tax Revised
Form 16 Part B for the F.Y.2020-21
Significant changes in the field of income tax will take effect from 1 April 2021. The new financial year is set to begin on April 1st. Budget 2021 has some major changes for this financial year (2021). In the budget of 2021,
Finance Minister Nirmala Sitharaman did not give any exemption to the middle class and salary class in the field of income tax. However, those over the age of 75 were exempted from filing income tax returns this time.
It is decided to take action against those who do not file income tax returns. All the changes come from April 1, 2021.
If a person does not file an income tax return (ITR) from April 1, the interest rate on TDS on bank deposits will be doubled. This means that if a person does not come to the income tax outgo slab and file an ITR, the rate of TDS will be doubled.
The income tax changes come into the effect from 1 April 2021
1. Pre-filled ITR Forms A major change to the ITR form is expected as per the 2021 budget (Pre-Filed ITR). PrefieldITR forms will contain information on securities listed, dividend income, bank/post office interest, etc. Previously filed ITR forms were available for salaried employees where income was reflected on the basis of Form 16, but now the scope is wide.
2. Interest on PF earned from the provident fund is exempt from income tax. However, the 2021 budget proposes to provide a fund of Rs. 5 lakh taxable.
3. Penalty for not linking Aadhaar and PAN from 1st March 2021, the date fixed for connection of Aadhaar and Income PAN. In case of non-linking, your PAN card will be valid. If failed to submit connection may result in a fine of Rs. 10,000 / -. Link PAN with 10,000 Aadhaar as per Section 272 B of the Income Tax Act
4. Higher TDS / TCS rates for non-filers of income tax returns (ITR) A new section 206 AB (ITR) has been inserted in the Income Tax Act as a special provision for higher rates for TDS for non-filers of income tax returns.
The proposed rate on non-filers is higher than below: twice the rate or 5% more than double the rate prescribed in the relevant provisions of the law, similarly, a new section 206 CCA has been inserted in the Income Tax Act as a special provision for non-filing of income tax returns (ITR). Providing higher rates for TDS for filers The proposed rate for non-filers is higher than the following: 2% to 5% of the rate specified in the relevant provisions of the Act
5. Provide the bills under the LTC cash voucher scheme
To avail tax benefits under the LTC Cash Voucher Scheme, ensure that the required bills in the correct format containing the GST amount and the seller's GST number have been submitted to your employer (if the employer is proposing this scheme) on or before March 31, 2021. Employees will have to spend three times the amount considered as LTA rent on goods and services that attract 12% or more GST.
No tax filing for senior citizens above 5 years of age, those over 75 years of age and those whose pension income and interest on fixed deposits come to the same bank and who have only interest income, are not required to file an income tax return.
The bank will deduct the income tax that he has to pay and the money that he has to pay to the government. The condition is that only the pension income of the person and the interest on the fixed deposit should be deposited in the same bank.
Relief of Super Senior Citizens
Does the TDS rule apply to senior citizens? From April 1, 2021, senior citizens over the age of 75 will not have to do ITR. This exemption has been granted to senior citizens who are dependent on pension or fixed deposit interest.
