What Is A Significant Change In Income

| Income Taxation - Manufactures- Featured
eighteen Mar 2021
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Meaning Changes In Income Tax That Would Come up With Consequence From 1st April 2021 includes Pre-filled ITft Forms, Tax on Interest on PF, Penalty for Non-Linking of Aadhar & PAN, High TDS/TCS Charge per unit for Income Tax Return (ITR) Not-Filers, Submission of bills under LTC Cash Voucher Scheme and No Tax Filing For Senior Citizens Above 75.

i. Pre-filled ITft Forms

A major change in ITft Class is expected every bit per Budget 2021 (Pre Filed ITft) volition exist introduced.

The Prefilled ITft Forms volition have information of Capital letter 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 ground of Form 16, but now the telescopic has become wide.

2. Tax on Involvement on PF

Involvement earned from the Providend fund is exempt from Income Taxation.

But, in Budget 2021 has proposed that Interest on Employee Contributions to Providend fund over fts. 2.5 lakhs should Taxable.

3. Penalization for Non-Linking of Aadhar & PAN

The Due Date for linking Aadhar and Income Taxation PAN is 31st March 2021.

In example of non-linking, your PAN Menu would become in-operative.

In example 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 charge per unit for TDS for the not-filers of income tax return (ITR).

The Proposed Rate on Not-Filer is higher of the post-obit:

5%
twice the rate specified in the relevant provision of the Deed
twice the charge per unit or rates in force

Similarly, a new sec 206CCA has been inserted in Income Tax Act equally a special provision providing for higher rate for TCS for the non-filers of income taxation render (ITR).

The Proposed Rate on Non-Filer is college of the post-obit:

five%
twice the rate specified in the relevant provision of the Human action

v. Submission of bills nether LTC Cash Voucher Scheme

To avail the taxation 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 accounted every bit LTA fare on goods and services attracting GST of 12% or more.

6. No Taxation Filing For Senior Citizens Above 75

Persons whose historic period is above 75 years and who has pension income and interest from fixed deposit comes in the same bank and who has only involvement income, they demand non file income tax return. Banking company volition deduct the income tax which he has to pay and deposit to the regime. The condition is the person should have only pension income and involvement from fixed deposit should accumulate in the aforementioned banking concern.

Source- https://icmai.in/upload/Revenue enhancement/Significant_Changes_Income_Tax_1April2021.pdf