From TDS to LTC: These rules will change from April 1
- All of these important tasks will have to be undertaken by the taxpayers in the new financial year.
With the beginning of the new financial year on April 1, a number of significant changes will take place with regards to the tax rules. All of these important tasks will have to be undertaken by the taxpayers in the new financial year. Some of these changes are in accordance with the announcements made by finance minister Nirmala Sitharaman in the Union Budget 2021.
Notably, March 31 is also the deadline set by the government to link Permanent Account Number with the Aadhaar card, otherwise, PAN will become inoperative from April 1. Taxpayers also have to fill the revised income tax return (ITR) by March 31.
Here are some of the rules that will change from April 1, 2021:
1. Provident fund (PF): Starting from April 1, the government will tax the interest on annual employee contributions to PF over ₹250,000. The proposal for it was made in the Union Budget.
2. Changes in tax deducted at source (TDS): In accordance with a provision made in the Budget, the government will charge TDS from those not filing ITR.
3. Income tax returns (ITR) for senior citizens: In the coming financial year, senior citizens above 75 years of age will be exempted from filing income tax returns. This facility can be availed by only those senior citizens who have no other income source except pension and interest income.
4. Pre-filed ITR forms: In the new financial year, the income tax department will provide pre-filled ITR forms which are expected to increase taxpayer compliance. The pre-filled form will have information with respect to the capital gains from listed securities, dividend income, interests from banks, interests from the post offices, etc.
5. Change in Leave Travel Concession Cash Voucher (LTC): With the aim to provide relief to employees, tax exemption will be given in place of the amount that was earlier given to an employee in lieu of LTC. To avail of the benefit, employees will have to ensure that the required bills are submitted to the employer on or before March 31.