Five Rules of Income Tax: This is the last month of this financial year. Apart from ITR, EPF, many more rules are going to change in the new financial year from 1 April. Which is going to have a direct impact on taxpayers. There have been many changes in the rules of income tax in this year’s budget (2021-22). Let’s know five changes that will affect your earnings.
Tax on interest received on EPF
From 1 April 2021, the Employee Provident Fund (EPF) will be exempt from tax of up to Rs 2.5 lakh, but the interest on the investment above that will be taxed. Understand in easy language, if you invest 4 lakh rupees in EPF, then you will be taxed on the additional interest you will get on the additional 1.50 lakh rupees. Finance Minister Nirmala Sitharaman had said in her budget that those earning less than Rs 2 lakh a month will not be affected by it.
Government will take tough action against those who do not file income tax returns
The government will now take strong action against those who do not file income tax returns. This time the budget has added special provisions in sections 206AB and 206CCA of the Income Tax Act. Under this rule, more TDS will be deducted for those who do not file income tax returns.
Exemption for filing income tax return to senior citizen
People older than 75 will no longer have to file income tax returns. This was announced by Finance Minister Nirmala Sitharaman in the budget speech this time. But this exemption will be left only to those whose income is nothing but a pension.
Pre Filed ITR
This time the central government has given a great convenience to the employees. Individual tax payer will now be provided with the Pre-Filed ITR form. This will make it easier to file income tax returns.
In this year’s budget, LTC has also been announced in the budget. The last time employees could not take advantage of LTC due to Corona. Now the government will pay them cash which will not come under the tax.