New Delhi: In the general budget (Budget 2021-22) presented by Finance Minister Nirmala Sitharaman, the salaried class’s eyes were on the provisions of exemption in income tax. But this time there has been no change in the income tax slab in the budget. However, the Finance Minister has announced relief for the elderly above the age of 75 years. Some changes have been made in the income tax rules in the budget. These changes will come into effect from April 1, 2021.
Double TDS for not filing ITR
In order to encourage the filing of ITRs, the Central Government has tightened TDS rules for those who do not file ITRs. For this, the government has added section 206AB to the Income Tax Act. According to this, if you do not file ITR now, you will have to pay double TDS from April 1, 2021. According to the new rules, tax collection at source (TCS) will also be higher on those who have not filed income tax returns.
Contribution to EPF
The Finance Minister had said that tax will be levied on the interest of EPF on an employee’s contribution of more than Rs 2.5 lakh in a year. This rule will be applicable from 1 April. Finance Minister Nirmala Sitharaman announced this to rationalize the tax exemption given to employees whose income is high.
Pre-field ITR Form
While presenting the budget, the Finance Minister had mentioned the pre-field ITR. Individual taxpayers will now be provided with a pre-field ITR form from April 1, 2021, for the convenience of employees and to simplify the process of filing income tax returns.
Notified LTC scheme
In the Budget 2021, the Modi government has notified the LTC Cash Voucher Scheme. The scheme was launched for employees who did not take advantage of the LTC tax benefit due to the travel ban imposed due to the Coronavirus epidemic.
Exemption of income tax return to the elderly
Finance Minister Nirmala Sitharaman announced that the government is going to reduce the pressure on the elderly over the age of 75 years. Those older than 75 years, whose source of income is only pension and interest, will no longer have to file income tax returns.
