There is only seven days left for the financial year 2020-21 to end. Five rules related to income tax are about to change from the new financial year i.e. 1st April. In the budget , Finance Minister Nirmala Sitharaman has changed the rules related to income tax which will come into effect from April 1. Let’s know about such rules ..
1- The Income Tax Department has decided to extend the Pre Filed Section in the ITR from April 1. Archit Gupta, CEO of Clear Tax, suggested to taxpayers, “While filling tax payers pre-filtered ITR, it should be noted that all the information related to TDS, interest, capital gains should be correct.”
2- In his budget speech, Finance Minister Nirmala Sitharaman had announced that if the PF contribution is more than 2.5 lakh, then it will be taxed from the new financial year. From April 1, now your EPF contribution will also have to be monitored.
3- People over 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 pension.
4- 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.
5- In this 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 tax. This scheme will remain in force till 31 March.
6- This time there are two new tax arrangements in front of the tax payers. It depends on the tax payers whether he chooses the old tax system or the new tax system. Tax payers have time till March 31 to do all their tax savings.