Income Tax filing to EPF investment: Changes in rules from April 1 | All you need to know

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Income Tax filing to EPF funding: Changes in rules from April 1 | All you need to know

With the start of the brand new monetary 12 months on April 1, shoppers will witness some vital adjustments in rules that are going to pinch their pockets and have an effect on cash matter to a big extent. From adjustments in banking rules due to merger of banks, revenue tax filing rule adjustments in phrases of EPF funding, to, new wage construction from April 2021, TDS/TCS deduction, adjustments in ITR rules for senior residents, LTC money voucher scheme, banks merger and so on. are a few of the obvious adjustments which are going to happen from 1st April 2021.  

Some of those adjustments are in accordance with the bulletins made by finance minister Nirmala Sitharaman in the Union Budget 2021.

Notably, March 31 can also be the deadline set by the Centre to hyperlink PAN Card with the Aadhaar card, in any other case, PAN will turn out to be inoperative from April 1. Taxpayers even have to fill the revised revenue tax return (ITR) by March 31.

Here are a few of the rules that can change from April 1, 2021:

EPF Investments:

Starting from April 1 2021, people funding in EPF account will come underneath the ambit of revenue tax. The authorities will tax the curiosity on annual worker contributions to EPF ₹2.5 lakh and above will likely be taxable in a monetary 12 months. The proposal for it was made in the Union Budget. The authorities, nonetheless, in the simply handed Finance Bill has raised the restrict to Rs 5 lakh, topic to sure circumstances. This elevated tax-exempt restrict is relevant to solely these PF contributions the place there isn’t any employer contribution.

Income Tax rule on TDS:

The revenue tax rule for TDS (Tax Deducted at Source) will likely be modified from April 1, 2021, in accordance with a provision made in the Budget. From April 1, the federal government will cost TDS from these not filing ITR. In her funds speech, Finance Minister Nirmala Sitharaman mentioned that if an individual would not file an revenue tax return (ITR), then, in that case, the TDS charge on financial institution deposits would double. 

Change in LTC money voucher scheme:

With the purpose to present reduction to staff, the central authorities notified that there will likely be a Leave Travel concession or LTC money voucher scheme’s exemption as in opposition to a go away journey concession (LTC). This scheme is just obtainable until thirty first March 2021, i.e. cash should be spent by this date to avail of the scheme. Employees could have to be certain that the required payments are submitted to the employer on or earlier than March 31.

Public sector banks merger:

If you are a buyer of any of those seven public sector banks — Dena Bank, Vijaya Bank, Corporation Bank, Andhra Bank, Oriental Bank of Commerce, United Bank of India and Allahabad Bank — then your passbook and cheque e book will turn out to be non-functional from 1st April 2021 as these banks have merged with different banks.

Salary construction from 1st April:

Among all of the adjustments, the largest would be the change in staff’ working hours and their wage construction. The authorities is planning to enhance the working hours to 12 hours from the present 9 hours. The adjustments are anticipated to come into impact from April 1. It can also be possible to embrace the change in staff’ wage construction with a rise in the gratuity and provident fund and a lower in take-home wage.

Income tax returns (ITR) for senior residents:

Senior residents above 75 years of age will likely be exempted from filing revenue tax returns in the event that they fulfill sure circumstances. This facility may be availed by solely these senior residents who don’t have any different revenue supply besides pension and curiosity revenue. The exemption from filing revenue tax returns could be obtainable solely in case the place the curiosity revenue is earned in the identical financial institution the place the pension is deposited. 

ALSO READ: ​Aadhaar-PAN linking final date in the present day: Easy steps to hyperlink Aadhaar-PAN Online

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