From mandatory e-invoice to change in TDS, PF norms, list of 10 tax-related rules to change from April 1
New Delhi | Jagran Business Desk: The current financial year is approaching its end in just a day and with the end of the FY 2020-21, the deadline for completing several tax-related tasks is also coming to an end. While some of these tasks are important for a taxpayer to complete before the end of the financial year, some of them are according to the recent announcements by finance minister Nirmala Sitharaman during her Union Budget 2021 speech. These changes in income tax rules will directly impact the pockets of the salaried class. So as Financial Year 2021-22 is about to begin, here are a few things that are going to change from April 1:
PAN-Aadhaar linking: According to the latest update, the Central government had extended the deadline to link your Aadhaar Card with your PAN Card till March 31, 2021, and no further extension has been announced by the government. If a person fails to link his/her PAN card with Aadhaar by March 31, 2021, then the PAN card will become inoperative from April 1 and the person will not be able to conduct any financial transaction. A penalty of Rs 10,000 may also apply as per Section 272B of the Income Tax Act.
Revised ITR filing: In case there has been an error in your ITR, you can file a revised income tax return by March 31. In you have not filed ITR yet, you can also file a delayed income tax return for FY 2019-20. If you file your ITR after the March 31 deadline, then you may have to pay a late fee of up to Rs 10,000. However, if your income is up to Rs 5 lakh, then you will have to pay a fee of Rs 1,000.
LTC Cash Voucher Scheme bill submission: Government employees have to submit their Leave Travel Concession Cash Voucher (LTC) by March 31, 2021, in correct format to avail of the tax benefits that are provided under the scheme. The employees also have to submit the GST amount and the GST number.
Contribution to PPF and NPS accounts: A subscriber of PPF or NPS accounts needs to make sure that he/she deposits a minimum contribution of Rs 500 per year in order to avoid the account becoming dormant. In case of a PPF account in your own name or in the name of your children or spouse, you need to make a minimum contribution of Rs 500 by March 31 to avoid the account becoming dormant. The same also applies to the NPS account as well.
Vivad Se Vishwas Scheme: The last date for filing declaration under the Vivad Se Vishwas scheme is March 31, 2021. The date for payment of tax without additional interest under the scheme is 30 April 2021.
Provident Fund Tax Rule: From April 1, the government will tax interest on annual employee contributions to PF over Rs 2.5 lakh.
TDS rule change: Higher TDS (tax deducted at source) or TCS (tax collected at source) will be charged from those not filing ITR.
Gratuity period will be reduced: Under the new labour law, the time limit of gratuity will be reduced. Only a fixed period employee will get gratuity benefits only if he or she works in a firm for five consecutive years.
E-invoice will be mandatory: Under the Business to Business (BTB) trade, e-invoice will be mandatory from April 1 for all such traders who have a turnover of more than Rs 50 crore.
Senior citizens above 75 exempted from filing ITR: From April 1, senior citizens above the age of 75 years with only pension income will be exempted from filing income tax returns (ITR).
Posted By: Talibuddin Khan