These 5 big rules have changed in Income Tax 2021, Know Details.
Welcome back to our informative blog site knowing steps360 with a new IMP News. Many things related to your financial transactions and bank have changed. These changes are applicable for the financial year 2022 and some limits have been increased. But the changes have to be implemented in the current financial year itself. If you want that there is no problem in the future, you have to be free from the hassles of tax, etc., then know about these 5 rules. These rules are related to PF PF, TDS TDS, PAN linkage, linked insurance plan, and senior citizen ITR.
5 Rules have changed in Income Tax 2021
No.1- Interest on PF
The rule of tax on the interest of Provident Fund PF has come into force this year. The government has announced a new rule regarding the interest received on EPF. If money is deposited in EPF and interest is earned on it up to Rs 2.5 lakh or more, then now income tax will have to be paid. In this new financial year, this rule is applicable after 1 April 2021. However, a big facility has been given to the taxpayer in this. If there is no money deposited by the company in your PF, then you can take advantage of tax exemption on the interest of EPF up to Rs 5 lakh.
No.2- New rule of TDS
This year TDS is being deducted at a higher rate. It is effective from July 1, 2021. This rule is for those who have not filed income tax returns. Those who have not filed ITR and whose TDS is deducted, their TDS will be deducted more than before.
If a taxpayer's TDS is deducted more than Rs 50,000 and he does not file an income tax return, then his TDS will be deducted at a higher rate. This rule is for the last two ITR filings. According to the income tax section, TDS will be deducted at twice the percentage of tax that is deducted. If the taxpayer has not given the information of PAN to the institution deducting TDS, then up to 20% can be deducted.
No.3- PAN Linking
Linking your PAN with the Aadhaar number has been made mandatory. Earlier its last date was fixed as June 30, 2021, but later due to the Corona epidemic, the period was extended till September 30. If you do not or do not link PAN and Aadhaar by this stipulated date, then PAN will be closed and then you will have to pay a fine, this work is very easy and can be done online sitting at home. PAN-Aadhaar gender has been made mandatory to avail the services of almost all financial institutions or banks.
No.4- Linked Insurance Plan
When investing in an insurance plan, some rules have been changed this financial year. These changes have been made in linked insurance plans or plans which are linked to the stock market.
If you pay a premium of up to Rs 2.5 lakh or more in a linked insurance plan in a year, take financial benefits of that plan, then the money earned will be counted as capital gains and you will have to pay tax. It is just like investing in an equity mutual fund. However, insurance plans that are non-linked or not linked to the stock market will not attract any tax.
No.5-Senior Citizen ITR
Now senior citizens above the age of 75 years are exempted from filing income tax returns. But there is a condition in this. If senior citizens take pension from any one bank and get interested in that bank, then there will be no need to file ITR in that particular current year.
Suppose a senior person has an account with SBI and they take benefit of interest along with pension, then they will not be obliged to file ITR. This rule is applicable from the financial year 2021. It was not like this before.
*** All Of the above Changes will see in the Income-tax Rules 2021, Every section is important for every tax payor of Indian citizens. Please read carefully and know each and every section of this part which is cover the New income tax rules 2021.
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