With the start of the new fiscal year, many new rules are also coming into effect, which will change your business strategies.
Apart from this, the Central government has also extended the deadline of some tax rules or procedures due to the COVID-19 nationwide 21-day lockdown. So, they will remain intact even after the starting of the new fiscal year 2021. These rules also include the filing of income tax returns for the year 2018-19 and much more. The Central government has extended its last date too. Similarly, the last date for linking PAN card to Aadhar Card has also been extended to June 30’ 2020.
Here’re 4 rules coming forth in effect from April 1’ 2020.
1. According to the announcement made in the Budget-session 2020, the new tax slab will be effective from April 1. However, the old tax slab will also remain in effect. This will give people the option to choose one of the two slabs of the Central tax option. The new tax slab announced in the budget has zero on annual income up to 2.5 lakh, 5 percent on annual income between 2.5 lakh and 5 lakh, above 5 lakh and 10 percent on the annual income of less than 7.5 lakh, above 7.5 lakh and 15 percent on the annual income below 10 lakh, 20 percent on annual income above 10 lakh and below 12.5 lakh, 25 percent on annual income above 12.5 lakh and below 15 lakh and 30 percent on annual income above 15 lakh. There is a provision of tax.
2. Dividends received from mutual funds and domestic companies will be taxable to the recipient. The new tax rule, effective from April 1, will put a higher burden on investors in higher tax brackets, while those in lower tax brackets will be less burdened.
3. If the employer’s contribution to the NPS, EPF and pension fund crosses Rs 7.5 lakh in a year, it will be taxable at the employee’s end. This change in the income tax rule will apply to both new and old tax slabs.
4. For those who are buying a house for the first time and its price is up to 45 lakh rupees, then for them, the government has extended the date of additional tax benefit for one year till 31 March 2021. The landlord, who takes a loan to buy a house up to 45 lakhs, will get an opportunity to claim an additional tax exemption of 1.5 lakhs on interest in addition to the existing two lakhs tax rebate.