Top 8 Key Issues for 2021 Tax Law Changes
1. EPF Contribution-
From the 1st April 2021, earn the interest on the employee's deposition to the Provident Fund above Rs 2.5 lakh per year will be taxable. The change was intended to tax high-income earners who contribute to the Employees ’Provident Fund (EPF), but the government argued that it would affect contributors less than 1%.
The benefit of EPF employees and those receiving below Rs 2 lakh per month will not be harmed by this move.
2. Pre-filed income tax returns-
Individual taxpayers will receive pre-filled ITR forms. The move is aimed at making it easier to file returns. The department will introduce pre-filled Income Tax Return (ITR) forms for taxpayers with information on taxpayers' mutual funds, shares, dividend income and interest earned from banks.
Also, withholding tax (TDS) on dividend income above Rs 5,000 will be levied in 26 AS forms and will help in filling up the return forms in advance.
If you need this Excel Utility- Prepare at a time 50 Employees Income Tax Form 16 Part A&B Preparation in Excel for the F.Y.2020-21 as per new and old tax regime.
3. LTC Voucher:
The Holiday Travel Concession (LTC) The cash voucher scheme was announced by the central government in the 2021 budget. The scheme was launched last year to improve market demand and provide tax benefits to those who are unable to seek a standard LTC tax credit due to travel. Limitations in COVID-19.
Employees will still be able to get one-third of the cost set for the 2018-21 block on holiday travel discount (LTC) or less than 36,000 if they spend on goods purchased for GST @ 12%. Or more, the condition is paid through no cash mode and is spent between October 12, 2020, and March 31, 2021.
Higher TDS for income tax return non-filers:
Non-filers with income tax returns will face higher TDS rates under the proposed section 206 AB of the Income Tax Act.
The relevant provision of the proposed TDS rate law in this section shall be the amount of double the fixed-rate, or double the rate of ball or rate, or 5%.
If you need this Excel Utility- Prepare at a time 100 Employees Income Tax Form 16 Part A&B Preparation in Excel for the F.Y.2020-21 as per new and old tax regime
5. Senior citizens over the age of 755 are not required to file a tax return:
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6. Unit Linked Insurance Plans (ULIPs)
The government has brought unit-linked insurance plans (ULIPs) under taxation. The redemption of ULIPs issued on or after February 1, 2021, where the individual premium exceeds Rs. 2.5 lakh will be brought under the equivalent capital gain of an equity-based mutual fund.
7. Delayed ITR timeline
Late ITR filing deadline reduced:
The last date for filing revised income tax returns or built-in returns on a voluntary basis will now be 31 December after the end of the financial year instead of 31 March 2022.
If you need this Excel Utility- Prepare at a time 50 Employees Income TaxForm 16 Part B Preparation in Excel for the F.Y.2020-21 as per new and old tax regime
8.. Extending interest tax break on home loan
To encourage first-time domestic workers, the interest rate on home loans of Rs 1.5 million for loans taken up to March 31, 2021, has now been increased by one year to March 31, 2022.
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