Income Tax Rule Change: There are going to be many changes in the rules of income tax from tomorrow ie 1st April. The changes announced in the budget this year by Finance Minister Nirmala Sitharaman will be implemented from April 1, 2021. Know which rules related to income tax are going to change from tomorrow.
Income tax returns will not be filed
This year, Nirmala Sitharaman announced relief to people above 75 years of age by filing income tax returns. That is, people whose age is 75 years or more, they will not have to file income tax returns from April 1.
The amount deposited in EPF will be taxable
According to the new rules of income tax, if you invest more than Rs 5 lakh in EPF from April 1, 2021, then the interest on it will be taxable. Till now, there was no tax on its returns. The government has taken this decision to increase the tax burden on the employees with higher salary.
ITR forms will be filled in advance
For the convenience of the employees and to make the process of filing income tax returns common taxpayers will now be provided with the pre-field ITR form from 1 April 2021. This will make it easier to file ITR. That is, information other than income will be filled in the form beforehand.
With effect from April 1, 2021, advance tax will be made on the dividend income only after the payment or declaration of the dividend.
Long term capital gains
Long-term capital gains up to Rs 1 lakh on equity shares are excluded from the tax net. If the amount is more than this, the amount above 1 lakh will be taxed at the rate of 10%.
Double TDS for not filling ITR
The central government has tightened the TDS rules to encourage filing ITRs for those who do not file ITRs. For this, the government has added section 206AB to the Income Tax Act. Accordingly, if you do not file ITR now, you will have to pay double TDS from April 1, 2021.
Will have to pay more TCS
According to the new rules, tax collection at source (TCS-TCS) will also be higher on those who have not filed income tax returns. 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. That is, TDS will be doubled for those who do not file ITR.
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