Pre-filled ITR Forms
A major change in ITR Form is expected as per Budget 2021 (Pre-Filed ITR) will be introduced. The Prefilled ITR Forms will have information of Capital Gains from Listed Securities, Dividend Income, Interest from Banks/Post Office, etc. Earlier Pre-filed ITR form was available for salaried employees where Income was reflected on basis of Form 16, but now the scope has become wide. This is basically done for easing the filing of returns.
Tax on Interest on PF
Interest earned from the Provident fund is exempt from Income Tax. But Budget 2021 has proposed that Interest on Employee Contributions to Provident fund over Rs. 2.5 lakhs should Taxable. This is done for taxing high-value depositors in the Employee Provident Fund (EPF).
Penalty for Non-Linking of Aadhaar & PAN
The Due Date for linking Aadhaar and Income Tax PAN is 31st March 2021. In case of non-linking, your PAN Card would become in- operative. In case of Non-Linking, you may be charged a fine of Rs. 10,000 as per Section 272B of the Income Tax Act.
High TDS/TCS Rate for Income Tax Return (ITR) Non-Filers w.e.f. 01.07.2021
A new sec 206AB has been inserted in Income Tax Act as a special provision providing for a higher rate for TDS for the non-filers of income tax return (ITR).
The Proposed Rate on Non-Filer is higher of the following:
- 5%
- twice the rate specified in the relevant provision of the Act
- twice the rate or rates in force
Similarly, a new sec 206CCA has been inserted in Income Tax Act as a special provision providing for higher rate for TCS for the non-filers of income tax return (ITR).
The Proposed Rate on Non-Filer is higher of the following:
- 5%
- twice the rate specified in the relevant provision of the Act
Submission of bills under LTC Cash Voucher Scheme
To avail the tax benefit under the LTC Cash Voucher Scheme, ensure that required bills in the correct format containing GST amount and GST number of the vendor have been submitted to your employer (provided the employer is offering the scheme) on or before March 31, 2021. As per the scheme, an employee is required to spend three times the amount deemed as LTA fare on goods and services attracting GST of 12% or more.
No Tax Filing For Senior Citizens Above 75
Persons whose age is above 75 years and who have pension income and interest from fixed deposit come in the same bank and who have only interest income, they need not file an income tax return. Bank will deduct the income tax which he has to pay and deposit to the government. The condition is the person should have only pension income and interest from fixed deposit should accrue in the same bank.