Income Tax & TDS: Updates

Non-filers will face a higher penalty in the current fiscal year, which has already started from April 1, 2021. The Finance Act 2021, which was recently passed by Parliament, has a “Special provision for deduction of tax at source for non-filers of income-tax return.” After section 206AA of the Income Tax Act, a new section […]

The financial year is ending soon. Budget 2021 has left personal income tax rates unchanged, however, it came with some changes, majorly on the compliance front. Some changes are proposed to be effective from the financial year 2021-22, and some will be implemented from the start of the coming financial year itself i.e 1st April 2021. The

From FY 2020-21, taxpayers can choose between two income tax regimes – the existing/old tax regime and the new, concessional one. By opting for the existing tax regime, the taxpayer can continue to avail existing deductions such as section 80C, section 80D etc. of the Income-tax Act, 1961 and tax exemptions like house rent allowance, LTC Cash

Normally, tax benefits on life insurance premium is available under section 80C of the Income Tax Act. However, the annual limit of tax benefit u/s 80C currently is Rs 1.5 lakh and apart from life insurance premium, the section contains many other investments/expenses that contains payment of tuition fee for education of up to two

A pension scheme applicable to all government employees and private employees is the NPS or National Pension System. It is among the most common choices for citizens trying to build a stable corpus along with a regular monthly income for their retirement. It is commonly perceived to be one of the cheapest investment opportunities for

“Suppose you are making payment to a contractor. And, when you’re getting the work executed, you’re supposed to deduct TDS at 2% — that’s the normal rate. If I made a payment of ₹ 1 crore, I deducted TDS of ₹2 lakh and deposited it in his account.,” explained Ved Jain, former President of The

Tax Deduction at Source (TDS) is one of the important compliance for Income Tax Assessee. Every Deductor has to deduct the TDS at the specified rate, if the payment exceeds threshold limit specified in particular section. There are various sections in Income Tax Law, which specify different TDS rates, nature of payment & its threshold

Budget 2021 has proposed to dis-allow deduction of employee’s PF contribution as an expense to employers if they do not deposit it in time. This is expected to put pressure on employers to deposit the employee’s provident fund contributions on time. To the extent that this ensures employers do not misuse or divert money meant for Employees’

Budget 2021 for Senior Citizens: Finance Minister Nirmala Sitharaman, while presenting the Budget 2021, has proposed no filing of Income Tax Return (ITR) by senior citizens who are above 75 years of age and have only pension and interest income. Pension from the ex-employer is taxed under the income tax head of Salary while family pension