Significant Changes In Income Tax That Would Come With Effect From 1st April 2021 includes Pre-filled ITft Forms, Tax on Interest on PF, Penalty for Non-Linking of Aadhar & PAN, High TDS/TCS Rate for Income Tax Return (ITR) Non-Filers, Submission of bills under LTC Cash Voucher Scheme and No Tax Filing For Senior Citizens Above 75.
Page Contents
1. Pre-filled ITft Forms
A major change in ITft Form is expected as per Budget 2021 (Pre Filed ITft) will be introduced.
The Prefilled ITft Forms will have information of Capital Gains from Listed Securities, Dividend Income, Interest from Banks/Post Office, etc.
Earlier Pre-filed ITft form was available for Salaried employees where Income was reflected on basis of Form 16, but now the scope has become wide.
2. Tax on Interest on PF
Interest earned from the Providend fund is exempt from Income Tax.
But, in Budget 2021 has proposed that Interest on Employee Contributions to Providend fund over fts. 2.5 lakhs should Taxable.
3. Penalty for Non-Linking of Aadhar & PAN
The Due Date for linking Aadhar and Income Tax PAN is 31st March 2021.
In case of non-linking, your PAN Card would become in-operative.
In case of Non-Linking, you may be Charged a Fine of fts. 10,000 as per Section 272B of the Income Tax Act.
4. High TDS/TCS Rate for Income Tax Return (ITR) Non-Filers wef 01.07.2021
A new sec 206AB has been inserted in Income Tax Act as a special provision providing for higher rate for TDS for the non-filers of income tax return (ITR).
The Proposed Rate on Non-Filer is higher of the following:
- 5%
- twice the rate specified in the relevant provision of the Act
- twice the rate or rates in force
Similarly, a new sec 206CCA has been inserted in Income Tax Act as a special provision providing for higher rate for TCS for the non-filers of income tax return (ITR).
The Proposed Rate on Non-Filer is higher of the following:
- 5%
- twice the rate specified in the relevant provision of the Act
5. Submission of bills under LTC Cash Voucher Scheme
To avail the tax benefit under the LTC Cash Voucher Scheme, ensure that required bills in the correct format containing GST amount and GST number of the vendor have been submitted to your employer (provided the employer is offering the scheme) on or before March 31, 2021. As per the scheme, an employee is required to spend three times the amount deemed as LTA fare on goods and services attracting GST of 12% or more.
6. No Tax Filing For Senior Citizens Above 75
Persons whose age is above 75 years and who has pension income and interest from fixed deposit comes in the same bank and who has only interest income, they need not file income tax return. Bank will deduct the income tax which he has to pay and deposit to the government. The condition is the person should have only pension income and interest from fixed deposit should accrue in the same bank.
Source- https://icmai.in/upload/Taxation/Significant_Changes_Income_Tax_1April2021.pdf
Good article on various topics keep on providing
Since tax is not deducted on sale or purchase of goods what will be the tax deduction rate
Please clear the doubt whether the Tax is applicable only for the interest earned on the contribution to PF above Rs.205 L, in the FY 2021-22 onwards or on PF a/c balance above Rs.2.5L
Double TDS u/s 206AB for non filers applicable w.e.f from 1st April 2021? Pls refer budget memorandum Its from 1st july 2021!!! Surprising its source quoted a professional body!!! https://icmai.in/upload/Taxation/Significant_Changes_Income_Tax_1April2021.pdf
Tax guru articles are simply superb and reliable.
Where is the question of linking Adhar with PAN in the case of NRIs?This pt should have been clarified.
Very informative articles & timely published.
Thanks.
What if House is sold in April or May this year and another house is booked and also turning 75 inDec 2021 and Feb 2022 same F Y and no other income . One partner has only pension and another only interest as joint account . What impact from Income Tax perspective .
How a person making payment will come to know that the person to whom the payment is to be made is filing return or not.
Please do not share wrong information.
Section 206AB regarding double TDS for non-filers is applicable from 01-07-2021
206AB & 206CCA is applicable from 1st July 2021 only. Please correct it, otherwise the readers will get confused.
Another proposed change regarding due date fof filing belated ITR.Its made December from March.
Nice Article! i have read about it sushant gupta defsys article but i want to know How to show income tax if earning income is from forex trading outside India ?
no liked adhar card==Reason
1.Name of PAN AND AADHAR NOT MATCH
2.In addhar mobile numer not update
please allow the assessee to link without change and update above information
Even if we comment otherwise nothing is going to be changed. Review of dividend tax ,long term capital gain tax on shares and mutual funds needed in the interest of all.