As we step into the brand new monetary yr 2021-22 (FY22) from immediately, our revenue tax course of will see a slew of modifications. These had been introduced by Finance Minister Nirmala Sitharaman throughout the presentation of the Union Budget 2021-22 in February.
Let us check out the modifications that may come into impact from immediately, April 1:
TDS (Tax Deducted at Source)
Higher TDS (tax deducted at supply) or TCS (tax collected at supply) was proposed by the finance minister as a way to make extra folks file their revenue tax returns. The insertion of two new sections — Sections 206AB and 206CCA — had been proposed throughout the finances in February as a particular provision for deduction of upper TDS and TCS from these not submitting ITR.
Senior residents aged 75 years or extra exempt from submitting ITR
The finance minister in her Budget 2021-22 proposed that people above the age of 75 years shall be exempted from submitting ITR. This was accomplished to ease the compliance burden on senior residents. This shall be accessible for under those that don’t have some other revenue and depend upon their pension and the curiosity revenue from the financial institution with which they’re holding their pension account.
PF tax guidelines
The tax-free curiosity on EPF contribution by staff and employers has been capped to a most of Rs 2.5 lakh in a yr. The finance minister has additionally raised the tax exemption restrict earned on PF contribution by staff to Rs 5 lakh in specified instances as towards the proposed Rs 2.5 lakh. The Rs 5 lakh contribution doesn’t embody the contribution by the employer.
Pre-filled Income Tax Return (ITR) types
In the brand new monetary yr starting from immediately, income-tax return types for particular person taxpayers will now come pre-filled with particulars of capital good points from listed securities, mutual funds, revenue from dividend, curiosity from banks and publish workplace, and so on. This transfer is aimed toward easing ITR submitting for taxpayers.
LTC scheme
In Budget 2021, the federal government gave a proposal to supply tax exemption to money allowance in lieu of Leave Travel Concession (LTC). This scheme was introduced final yr by the federal government for people who had been unable to say their tax profit on LTC on account of Covid-related journey restrictions.
