From reduction in gratuity period to no tax for senior citizens, 5 tax-related rules to change from April 1
New Delhi | Jagran Business Desk: The financial year 2020-21 will end soon. With the end of FY2020-21, several laws and income tax rules will change in India which will directly impact the pockets of the salaried class. So as Financial Year 2021-22 begins in India, here are a few things that are going to change from April 1:
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).
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.
Tax on higher PF contributions:
From April 1, a tax exemption limit on interest earned on provident fund (PF) contribution by employees will be raised to Rs 5 lakh per annum. However, it should be noted that this exemption should not include the employer's contribution beyond the statutory limit of up to 12 per cent of basic pay.
"I intend to raise this limit to Rs 5 lakh only in those cases, where there is no contribution by the employer in that fund. So, most often, it is employee contribution and employer's contribution, but there are contributions which are only employee and no employer contribution is made, in such cases that amount is raised to Rs 5 lakh," Finance Minister Nirmala Sitharaman had said in Union Budget 2021.
LTC cash voucher scheme:
The period of exemption available to employees under Leave Travel Concession (LTC) will end with the beginning of the new financial year.
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.
Posted By: Aalok Sensharma