From PAN To PF Tax, Nine Changes To Kick In From April 1 That You Must Know
New Delhi: With the new fiscal year beginning April 1, several financial changes are set to kick in for taxpayers. Besides, they also have to complete several tasks before the current financial year draws to an end on Wednesday.
Notably, several of the changes were announced by Finance Minister Nirmala Sitharaman in her Budget 2021 speech, Times Now reported.
Here are the nine important changes:
The last date for linking PAN with Aadhaar is March 31, 2021. If this is not done, your PAN will become inoperative from April 1, 2021. After your PAN becomes inoperative, you will not be able to conduct any financial transaction. Also, it will be assumed that your PAN has not been furnished as per law and a penalty of Rs 10,000 may apply under the Income Tax Act.
Revised ITR Filing
In case there has been an error in your Income Tax Return (ITR), you can file a revised ITR by March 31.
In you have not filed ITR yet, you can also file a delayed income tax return for FY 2019-20 by March 31. If you file after this, then you may have to pay a late fee of up to Rs 10,000. However, if your income is up to Rs 5 lakh, then you will have to pay a fee of Rs 1,000.
LTC Cash Voucher Scheme Bill
Government employees are required to submit their Leave Travel Concession (LTC) cash vouchers by March 31, 2021, in order to avail of the tax benefits that are provided under the scheme. It is also necessary to have the GST amount and number. The scheme was announced by the Central government in October 2020.
Salary Details Submission Of Previous Employer
In case a person was employed with more than one employer in the current fiscal year, details of salary with the previous employer need to be given to the current employer. This will help in ensuring that proper tax deductions are made by the current employer. This should be done by March 31 as well.
Contribution to PPF & NPS Accounts
A subscriber of PPF or NPS accounts needs to make sure that he/she deposits a minimum contribution of Rs 500 per year in order to avoid the account becoming dormant. In case of a PPF account in your own name or in the name of children or spouse, you need to make a minimum contribution of Rs 500 by March 31 to avoid the account becoming dormant. The same also applies to the NPS account as well.
Long-Term Capital Gains
Long-term capital gains on equity shares which are listed and equity schemes are completely exempt up to Rs. 1 lakh. The balance is then taxed at 10 per cent. The long-term capital gains can be booked before March 31, if not done already.
Vivad Vishwas Scheme
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.
Provident Fund Tax Rule
From April 1, the government will tax interest on annual employee contributions to PF over Rs 2.5 lakh.
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.