All You Need To Know About The New Income Tax Rules

By Author: etps online
Total Articles: 8
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Exemption From Filing Taxes For Senior Citizens Above 75 Years:
To Exempt Compliance Burden From The Senior Citizens Who Have Income From Pension And Interest By An Account In The Same Bank, They Are Free From Filing Income Tax Returns (ITR). It Should Be Clarified That The Provision Is Only Available To Those Senior Citizens Who Have No Other Income Source Except For The Pension And Interest From The Host Bank.

Tax Deducted At Source (TDS):
A Higher TDS (Tax Deducted At Source) Or TCS (Tax Collected At Source) Has Been Proposed By The Finance Minister. It Is A Way To Make Sure More People File The Income Tax Returns (ITR). As A Special Provision For The Deduction Of Higher Rates Of TCS And TDS, New Sections 206AB And 206CCA Were Proposed For The Non-Filers Of Income Tax.

The EPF Tax Rules To Take A Hard Turn :
The Announcement Made During The Union Budget 2021 Stated That The Tax-Free Return For Employee Provident Funds (EPFs) And Unit Linked Insurance (ULIPs) Will Be Restricted At Rs. 2.5 Lakhs Each. Before This, The Employer’s Contribution To PF Was Limited To Over 7.5 Lakhs. But Now Any ...
... Contribution Above The Amount Of Rs. 2.5 Lakhs Will Be Accountable For Filing Tax Right At The Time Of PF Amount Withdrawal.

In Times Of Special Cases, Finance Minister Announced The Extended Limit For Tax Exemption On Interest Earned By PF To Rs. 5 Lakhs Per Annum. It Does Not Include The Employer’s Contribution.

You Can Choose The ‘New Tax Regime’ Instead Of The Old Tax Regime:
The New Tax Regime Was Implemented In Budget 2020 Last Year. However, Your Choice Of Exercising The New Tax Regime For The Financial Year 2020-21 Will Be Commenced From April 1, 2021, I.E. Tomorrow. The Decision To Make Tax-Saving Deductions Will Be Available To All Taxpayers Till March 31, 2021. They Can Choose A Beneficial Regime When They Are Filing Their Tax Returns For The Financial Year 2020-21.

Pre-Filled ITR Forms Will Be Enacted:
Pre-Filled Data, Auto-Populated Information From External Sources Are Present Including Details Of TDS, TCS, Bank Details, Personal Information, Taxes Paid As Advance Tax, Details Of Salary Income As Per Form 16, Etc.

In Order To Ease The Compliance Of The Taxpayer And Make The Process Simpler, Financial Minister Announced That Some More Specific Details Will Be Included In The Pre-Filled Income Tax Returns (ITR). Details Of Capital Gains From Listed Securities, Interest From Banks, Post Office, Dividend Income, Etc Will Be Available.

The LTC Cash Scheme:
In Budget 2021, The Central Government Has Proposed To Provide Tax Exemption For Cash Allowance Willingly For Leave Travel Concession (LTC). This Scheme Was Declared Last Year Aiding Individuals Who Were Unable To Claim Their LTC Tax Benefits Due To The Covid-19 Restrictions On Travelling.

Advance Tax Liability
The Advance Tax Liability On Dividend Income Will Come To Action Only After The Payment Of The Dividend Or Declaration.

The Last Date To File ITR For FY 2019-20
The Last Date For Filing ITR (Income Tax Returns) For FY 2019-20 Is March 31. Those Who Will Not Be Able To File The Returns Till March 31 Will Have To Pay A Late Fee. The Last Date For ITR Revision Is Also Revised To March 31, 2021.

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