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You can invest under section 80C, 80D etc in the tax reduction instrument and pay higher taxes if you have kept going with the old tax burden. In short, there will be two kinds of tax burdens confirmed last year.
April 1 marks the start of the Fresh FY & brings a host of changes in income tax. In Feb, the Minister of Finance, Nirmala Sitharaman, announced some of the changes. A list of modifications from the coming financial year is presented here.
In accordance with the previous Income-tax Act, ITR can open again and the taxpayer may be asked to make an inquiry for the last 6 income tax returns. This limit has been reduced in the budget. The ITR can only be opened up for up to 3 years under the new income tax rule. In other words, all financial documents should only be kept intact for a period of 3 years. The 10-year limit remains in the event of severe fraud up to 50 lakh.
In budget 2021 the Govt notified the Leave Travel Concession (LTC) Voucher Scheme. In October 2020, Finance Minister Nirmala Sitharaman announced that it would boost consumer demand and provide tax advantages to individuals who cannot claim the regular LTC tax benefit due to travel severe limitations.
With the purpose of making more people file income tax returns, the finance minister proposed higher Tax deducted at source and tax collected at source in Budget 2021. (ITR).
New Sections 206AB and 206CCA were proposed in the budget to apply for the income obtained during the financial year 2020-21 or the evaluation year 2021-22, to those opting for it as a special provision for deduction of higher Tax deducted at source rates.
But the exercise of option one of the tax regimes for the Finacial year 2020-21 will be required to be made beginning from 1/04/2021. Income tax Taxpayers still have time until 31/03/2021 to make tax-saving deductions, however, they will be able to opt for a beneficial regime at the time of filing their Income tax returns for the Finacial year 2020-21,”
As the impact of Tax deducted at source is present, it was time for taxpayers to exercise this option that concerned many taxpayers and deductors of TDS. In a few cases found when the employee declares an Income tax return es to the employer that he will stick with the Old New Tax Regime but at the time of filing an Income tax return, he or she chooses to go with the New Tax Regime. The employers were unsure as to how the Tax deducted at the source will be deducted.
Details of the salary income, tax payments, TDS, etc.. are given to individual taxpayers with a view to facilitating their compliance with the taxpayer (ITR). Details of capital gains from the securities listed, dividends income, and interest on banks, post office, and so on will also be pre-filled in order to facilitate the filing of returns. The move intends to make returns relatively easy.
You will experience a few other major changes from the next financial year 2021–22 when it comes to saving, investing, insuring and paying tax. Some of the new taxation rules and the reorganization of employees’ pay structures will influence your pay at home on 1 April 2021. At the time, you will be helped to make a better buying decision by new standard insurance products. Conclude, the laws and regulations are here and you have to work for yourself.
In the Union budget 2021 Finance Minister Nirmala Sitharaman announced, in order to facilitate the lives of individual taxpayers, that senior citizens who are over the age of 75 only with pension and interest as a source of income are exempt from filing tax returns.
Section 80EEA shall be ready until March 2022 as previously announced. The interest paid on the housing loans for affordable housing for the period from 1 April to 31 March 2020 was exempt according to section 80EEA to Rs. 150,000. This advantage is now available until March 2022.
ULIPs of 2.5 lakh or more annual premium are now taxed on maturity that was previously free of tax in accordance with Section 10(10D) of the income tax law. But the mortal benefit will continue to be tax-free in the event of the unfortunate death of the insured person. ULIP would be attracted, depending on their holding period, 15% Short Capital Gains Tax (CCGT) or 10% LTCG.
The government of India mandates Aadhar Card for Atal Pension Yojana (APY). Finance Ministry has exempted nonresident, non-citizens, a person who is of the age of eighty years or more at any time during the year from Mandatory Quoting of Aadhaar for filing ITR and for allotment of PAN.
Adhaar card and Pan linking option now activated on income tax website whereby now, name as per Adhaar card also to be given. Both get linked even if there is a difference in name.
Govt. asserted in the Supreme Court that Aadhaar was made mandatory for PAN card to weed out fake PAN cards which were used for terror financing and circulation of black money, while terming the concerns over privacy as “bogus”.
Finance ministry has extended the time limit for providing Permanent Account Number (PAN) or Form No. 60 by bank account holders who have not given it at the time of account opening or later to June 30, 2017.
CBDT has issued draft rules for stakeholder comment providing the manner of valuation- of an unquoted equity share for the purposes of section 56(2)(x) and section 50CA of the Income-tax Act, 1961.
All cash payments over Rs 2 lakh for loans and credit card bills during the 50 day period after demonetization will have to be disclosed in the new one-page Income Tax return form.
Prime Minister has asked the revenue department to scale up e-assessment facilities to cover 25 cities, take corrupt officers to task and promote a regime friendly to taxpayers. He also asked the department to train guns on Benami properties and focus on broadening the tax net.
Interest on FDs earned during the pre-operative period is taxable as ‘Income from Other Sources’ under the provisions of the Income Tax Act. ITAT Hyderabad: DRS Warehousing (South) v. ITO.
Members who have not shared their PAN with ICAI, It has been informed by the Income Tax Dept that the e-Filing account of the members will be blocked by the Income Tax Authorities.
New ITR forms released by I. Tax Department, effective from 01.04.2017. The Income-tax (Fourth Amendment) Rules, 2017 dated 30.03.2017.
Form No. ITR-1: SAHAJ: For Individuals having Income from Salaries, one house property, other sources (Interest, etc.), and having total income upto Rs.50 lakhs (1 Page Return).
Form No. ITR-2: For Individuals and HUFs not carrying out business or profession under any proprietorship.
Form No. ITR-3: For individuals and HUFs having income from a proprietary business or profession.
Form No. ITR-4: Sugam: For Presumptive Income from Business & Profession.
Form No. ITR-5: For persons other than (i) individual (ii) HUF (iii) company and (iv) person filing Form ITR-7
Form No. ITR-6: For Companies other than companies claiming exemption under section 11].
Form No. ITR-7: For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F).
Section 269ST from 1-4-2017 provides that no person shall receive an cash amount of two lakh rupees or more:
Otherwise penalty, a sum equal to the amount of such receipt.
Lease deed, power bill etc may be needed for claiming HRA rebate as producing fake property rent receipt, often from parents and relatives, has been an easy way to lower tax burden.
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