5 new rules are being introduced in the income tax in April 2021. Changes have been made in the field of income tax in line with the new labour and wage policy.
Union Finance Minister Nirmala Sitharaman announced several new policies on income tax in the Union Budget. The new policy is going to be effective from 1st April 2021.
A number of new policies are being introduced to ensure that more citizens file their income taxes on time. That is why the new tax policy is being introduced in the case of PF. Besides, the Union Finance Minister has also announced an increase in TDS and TCS. Not only that, changes have been made in the field of income tax in line with the new labour and wage policy. The Union Finance Ministry has also tried to facilitate the process of paying income tax. Pre-field income tax return application is being introduced.
Take a look at what changes are coming from April 1:
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1) Benefits for Senior Citizens:
Those aged 65 and above who are dependent on full pension and bank interest money for income does not have to file income tax returns. The money will be deducted from the bank where they get their pension.
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2) Pre-filled Income Tax Return Form:
Every taxpayer will get a pre-field income tax return form. This means that all the information of the taxpayer will be filled in the form beforehand. All the information like income, interest income from savings, payment of tax etc. will be mentioned there in advance. So the tax payment process will be easier.
3) New tax policy for PF:
If more than Rs 5 lakh is deposited on behalf of the employee for PF, the tax will be applicable from now on. Tax will be levied on the interest accrued on deposits above Rs 5 lakh. However, in this case, the money that the employer is depositing will not be caught.
In the words of the Union Finance Minister, 'The new EPF policy should be done keeping in mind the interests of the workers. This policy will not have any effect on a person earning less than Rs 2 lakh per month.
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4) TDS:
In this case, the main purpose of the new policy is to encourage more citizens to file income tax. In this year's budget, the finance minister has announced an increase in TDS and TCS.
The Union Finance Minister also announced the addition of two new sections, 206AB and 206CCA, to the Income Tax Act in the budget. According to this policy, those who do not file income tax will be deducted TDS and TCS at an extra rate.
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5) LTC:
In the Union Budget 2021, the Finance Minister announced tax exemption on Leave Travel Concession (LTC). The centre announced the policy during the Corona Lockdown last year. This year the workers will get the whole money. Basically, government employees will benefit from this.
