Income Tax Rules Are Changing from April 1, Here’s All You Need To Know
April 1 is an important date for income taxpayers in India as a number of changes are going to kick in
April 1 is an important date for income taxpayers in India as a number of changes are going to kick in. While some of these changes are according to the announcements made by Finance Minister Nirmala Sitharaman in Union Budget 2021, some others are important tasks that taxpayers should complete before the start of the new Financial Year.
Let’s have a look at changes which will be introduced from the coming financial year.
1. Last Date to file ITR for FY 2019-20
March 31 is the last date for filing Income Tax returns for Financial Year 2019-20. This deadline has already been extended multiple times because of the Covid-19 pandemic. Those who have not yet filed their returns will have to pay a late fee to do it by March 31.
2. Last date to revise ITR for FY 2019-20
Taxpayers are allowed to revise their returns if filed with errors previously. The deadline for ITR revision is the end of the relevant assessment year, i.e. March 31, 2021.
3. EPF tax rules
In the Budget 2021, the Finance Minister has proposed to tax the interest accruing on the employee contribution to the provident fund account in excess of Rs 250,000. This provision will come into force from or after April 1, 2021.
4. TDS rule change
Higher TDS (tax deducted at source) or TCS (tax collected at source) will be charged from those not filing ITR. This provision was announced in Budget 2021.
5. New ITR rule for senior citizens above 75 years
In the Union Budget 2021, the finance minister Nirmala Sitharaman announced that senior citizens above the age of 75 years, who only have pension and interest as a source of income will be exempted from filing the income tax returns.
6. Provident Fund Tax Rule
From April 1, The government will tax interest on annual employee contributions to PF over Rs 2.5 lakh.
7. LTC rule change
In order to provide relief to employees, Budget 2021 proposed to provide tax exemption to the amount given to an employee in lieu of LTC.