Planning to pay Income Tax? Here are the rules that will impact your pocket

The deadline for filing Income Tax Return is reduced by 3 months along with a maximum penalty of up to Rs 10,000, with a deadline for filing belated and revised ITR for FY 2020-21 to December 31, 2021. According to the new rules, the deposits in the EPF account should not be more than Rs 2.5 lakh.

With the new financial year, there are new rules that have come in place and it is going to make an impact on your pockets.

The government has come up with several changes for the taxpayers as well as the general public.

Here is the list of changes that goes into effect from April 1. 

1. Reduction in the Deadline for Filing ITR of FY 2020-2021 to December 31, 2021

The deadline for filing Income Tax Return is reduced by 3 months along with a maximum penalty of up to Rs 10,000, with a deadline for filing belated and revised ITR for FY 2020-21 to December 31, 2021.

2. Modification in Interest Rate of Provident Fund

According to the new rules, the deposits in the EPF account should not be more than Rs 2.5 lakh.

3. TDS Filings

The finance ministry has decided to raise the tax deducted at source (TDS) and it would be done under the Sections 206AB and 206CCA inclusions in the IT act.

4. ITR Forms Now Comes Filled up in Advance

The government has finally come up with a decision to give a pre-filled form to the taxpayers for the easy and quick execution income tax filing. 

5. No Income Tax Filing for Senior Citizens Above 75 Years

The finance minister Nirmala Sitharaman has exempted the senior citizens having an age of more than 75 years and for this from the income tax filing with an exception that is only applicable to pension holders with no other income. 

6. Leave Travel Concession (LTC) Exemption

The government had given good benefits in terms of claiming the tax benefits on LTC. 

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