Income Tax : Here Are the Top 5 Income Tax Changes That Will Come into Effect from 1 April

New Delhi: Union Finance Minister Nirmala Sitharaman, while presenting Union Budget 2021 had announced a new simplified income tax regime to bring some relief to the salaried class. The income tax changes that have an impact on the salaried class will come into effect from April 1, 2021.

However, all those who are more than 75 years of age have been given tax relief this time; those people will not have to file tax returns. This exemption has been given to those senior citizens who are dependent on pension or interest on fixed deposits.

According to the new rule issued by the Income Tax Department, from April 1, 2021, you will have to pay tax on the interest that will accrue if you make a PF contribution of more than 2.5 lakh rupees.

The Finance Minister has taken this decision keeping in view the employees with a higher salary. However, this will affect the monthly salary of only 2 lakh rupees.

The central government is promoting ITR filing. The government has made a new rule that those who do not file ITR will have to pay double TDS. The government has added section 206AB to the Income Tax Act. According to this section, if the ITR is not filed now, double TDS will be paid from April 1, 2021.

According to the new rules, from 1 July 2021, the Penal TDS and TCL rates will be 10-20 per cent, which is usually 5-10 per cent. For those not filing ITR, the rate of TDS and TCS will be doubled to 5 per cent or fixed rate, whichever is higher. The government is expanding the LTC scheme. This scheme will be implemented in the new financial year.

Keeping in mind the employees, the government has made the process of filing tax returns easy. A pre-field ITR form will be provided to individual taxpayers from 1 April 2021. This will make it easier to file ITR.