From April 1, 5 rules related to income tax will be changed, it will also affect your pocket

 From April 1, 5 rules related to income tax will be changed, it will also affect your pocket

Many income tax rules will change from April 1. Under the change, senior citizens over the age of 75 will not have to file an income tax return (ITR) from April 1. In addition, EPF will be taxable on interest earned on contributions of more than Rs 2.5 lakh per annum. We are telling you about 5 such changes.

Interest earned from EPF is tax free

In Budget 2021-22, the tax on interest received from the Employees Provident Fund (EPF) was announced. Now up to 2.5 lakh investments in EPF in a financial year will be tax free. If you invest more than that, the income from interest on the additional amount will be taxed. This means that if you have deposited Rs 3 lakh per annum, the income from interest on Rs 50,000 will be taxed at the rate of your tax slab.

Pre-field ITR form

For the convenience of the employee and to facilitate the process of filing income tax return, pre-field ITR form will now be made available to individual taxpayers from 1 April 2021. This will make it easier to file an ITR.

The LTC scheme can be availed

The Travel Leave Concession (LTC) cash voucher scheme will be implemented in the new financial year. The scheme has been launched for those employees who have not availed the LTC tax benefit due to travel ban due to Corona virus epidemic.

Exemption of Super Senior Citizen from filing ITR

From April 1, 2021, senior citizens over the age of 75 will not have to file an ITR. This exemption is given to senior citizens who are dependent on pension or interest earned on a fixed deposit.

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Double TDS for not filing ITR

The government has tightened the rules for those who do not file ITR. For this, the government has added section 206AB in the Income Tax Act. Under this, if you do not file ITR now, you will have to pay double TDS from April 1, 2021. Under the new rules, those who have not filed an income tax return will also be charged a higher tax collection at source (TCS). According to the new rules, from 1 July 2021 the penal TDS and TCL rates will be 10-20% which is usually 5-10%.