Take note of your tax changes from April 1, The big changes you need to know

#TaxChanges #PFInterest
Changes in the tax system that will come into effect from April 1, 2021

Your PF interest will be taxed: Interest on employee contribution towards provident fund above ₹5 lakh, will be taxable in the hands of the employee. This provision will be applicable to the contribution made by the employee on or after April 1, 2021.

Higher TDS rate: To make more people file income tax returns, rates for tax collected or deducted at source will be higher. If TDS of ₹50,000 or more has been deducted for the past two years and such person has not filed ITR, the rate of TDS/TCS will now be 5%.

Pre-filled ITR forms: In order to ease compliance for the taxpayer, details of capital gains from listed securities, dividend income, and interest from banks, post office, etc. will also be pre-filled in the ITR forms.

LTC cash voucher scheme: The government notified the LTC cash voucher scheme's exemption in place of a leave travel concession (LTC). Under this scheme, an employee can claim an exemption under LTC allowance against the purchase of specified goods/services.

Advance tax: Liability on dividend income will arise only after the declaration or payment of the dividend

No tax returns required for senior citizens above 75: An individual being a resident in India who is of the age of 75 years or above at any time during the previous year having income from pension and interest from any account maintained in the same specified bank in which he/she is receiving pension income are exempt from filing ITR.

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