Income Tax Alert! Employees Provident Fund, LTC to ITR Filing rules – 10 big changes to know before April 1
Income Tax Changes: March 31 is an important date for income taxpayers in India as a number of changes are going to kick in from April 1.
March 31 is an important date for income taxpayers in India as a number of changes are going to kick in from April 1. While some of these changes are according to the announcements made by Finance Minister Nirmala Sitharaman in Union Budget 2021, some others are important tasks that taxpayers should complete before the start of the new Financial Year.
1. Last Date to file ITR for FY 2019-20
March 31 is the last date for filing Income Tax returns for Financial Year 2019-20. This deadline has already been extended multiple times because of the Covid-19 pandemic. Those who have not yet filed their returns will have to pay a late fee to do it by March 31.
2. Last date to revise ITR for FY 2019-20
Taxpayers are allowed to revise their returns if filed with errors previously. The deadline for ITR revision is the end of the relevant assessment year, i.e. March 31, 2021.
March 31 is the last date to link your PAN with Aadhaar. Your PAN will become invalid after March 31 if it is not linked to Aadhaar.
4. Vivad se Vishwas Scheme: Payment deadline
March 31 is the last date for filing declaration under Vivad Se Vishwas scheme. The date for payment of tax without additional interest under the scheme is 30 April 2021.
5. Last date to make a tax-saving investment
Under the Income Tax rules, certain investments made in Financial Year helps in tax savings. The last date for this purpose for FY 2020-21 is March 31. You can invest in several instruments to save tax.
From April 1, The government will tax interest on annual employee contributions to PF over Rs 2.5 lakh.
7. TDS rule change
Higher TDS (tax deducted at source) or TCS (tax collected at source) will be charged from those not filing ITR. This provision was announced in Budget 2021.
In the new Financial year, senior citizens above 75 years of age will be exempted from filing income tax returns. This facility will be available to only those senior citizens who have no other income other than pension and interest income.
9. ITR forms pre-filed
In the new Financial Year, the Income Tax Department will provide pre-filled Income Tax Returns (ITR). This is expected to ease compliance for the taxpayer.
10. LTC rule change
In order to provide relief to employees, Budget 2021 proposed to provide tax exemption to the amount given to an employee in lieu of LTC. This will be subject to incurring specified expenditures.