Rules That Are Changing From April 1, 2021: Income Tax

By Author: Sumit Biswas
Total Articles: 24
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The Union Finance Minister Nirmala Sitharaman, while formulating Union Budget 2021 had announced a new simplified income tax regime to make some relief to the salaried class. The income tax changes that have an impact on the salaried class will come into effect from April 1, 2021. In this article, we will talk about Rules That Are Changing From April 1, 2021.

New Rules That Are Changing From April 1, 2021

The Finance Ministry while introducing Union Budget 2021 had announced a new simplified income tax regime to bring some aid to the salaried class. The income tax changes that have an impact on the salaried class will come into effect from April 1, 2021.

Also, Sitharaman in her February 1 discourse had declared that senior citizens of 75 years and above getting into the world pension income and interest from fixed deposits in the same bank would not be obliged to file income tax returns for the financial year beginning April 1.

New income tax rules
PF tax rules:

Interest on annual employee incomes to provident fund over ₹2.5 lakh would be taxed from 1 April 2021. The govt declared ...
... that the move is aimed at taxing high-value depositors in the Employee Provident Fund (EPF). Also, the EPF is intended for the welfare of workers and any person attaining less than ₹2 lakh per month will not be implicated by the proposal.

TDS:

In order to make more people to file ITR Filing, the finance minister has proposed higher TDS (tax deducted at source) or TCS (tax collected at source) rates in budget 2021.

Senior citizens above 75 years released from filing ITR:

To relieve the compliance obligation on senior citizens, the finance minister while illustrating Budget 2021, had absolved individuals above 75 years from filing income tax returns (ITR).

Pre-filled ITR forms:

Individual taxpayers will be rendered pre-filled Income Tax Returns (ITR). In order to rid compliance for the taxpayer.
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