5 new revenue tax guidelines that may come into impact from 1 April

Union Finance Minister Nirmala Sitharaman presenting Union Budget 2021 had introduced a slew of modifications within the revenue tax guidelines. These modifications are set to return into impact from 1 April 2021. According to the brand new guidelines, senior residents of the age 75 and above with revenue from pension and curiosity from fastened deposit in the identical financial institution can be exempted from submitting ITR from April 1. Besides, the Finance Minister proposed increased TDS (tax deducted at supply) for many who usually are not submitting their ITR and introduced to tax individuals contributing above ₹2.5 lakh yearly to the EPF account. Let’s check out 5 revenue tax modifications that may come into impact from 1 April: 1) PF tax guidelines: Interest on annual worker contributions to provident fund over ₹2.5 lakh can be taxed from 1 April 2021. The govt stated that the transfer is geared toward taxing high-value depositors within the Employee Provident Fund (EPF). Finance Minister Nirmala Sitharaman stated the EPF is aimed on the welfare of employees and any individual incomes lower than ₹2 lakh per thirty days won’t be affected by the proposal. Also Read | How India tightened the noose round OTT 2) TDS: In order to make extra individuals file revenue tax returns (ITR), the finance minister has proposed increased TDS (tax deducted at supply) or TCS (tax collected at supply) charges in price range 2021. The price range has proposed the insertion of recent Sections 206AB and 206CCA within the Income Tax Act as a particular provision for the deduction of upper charges of TDS and TCS, respectively for the non-filers of an revenue tax return. 3) Senior residents above 75 years exempted from submitting ITR: To ease the compliance burden on senior residents, finance minister Nirmala Sitharaman, whereas presenting Budget 2021, had exempted people above 75 years from submitting revenue tax returns (ITR). The exemption shall be obtainable to solely these senior residents who haven’t any different revenue however depend upon pension and curiosity revenue from the financial institution internet hosting the pension account. 4) Pre-filled ITR kinds: Individual taxpayers shall be given pre-filled Income Tax Returns (ITR). In order to ease compliance for the taxpayer, particulars of wage revenue, tax funds, TDS, and many others. already come pre-filled in revenue tax returns. To additional ease submitting of returns, particulars of capital features from listed securities, dividend revenue, and curiosity from banks, put up workplace, and many others. may also be pre-filled. The transfer is geared toward easing the submitting of returns. 5) LTC: The central authorities in Budget 2021 has proposed to offer tax exemption to money allowance in lieu of Leave Travel Concession (LTC). The scheme was introduced by the federal government final 12 months for people who have been unable to say their LTC tax profit resulting from covid-related restrictions on travelling. Subscribe to Mint Newsletters * Enter a legitimate electronic mail * Thank you for subscribing to our publication.