As with health insurance policies for you, your spouse, and children, section 80D of the Income Tax Act, 1956 provides tax benefits for health insurance policies for your dependant parents as well.
The new provisions will be applicable to purchase of goods, increased TDS rates for non-filers, and the pension of senior citizens.
As per this new section of the I-T Act, non-filers of IT returns will be subjected to higher TDS rates in case TDS from past 2 years is Rs 50,000 and above.
The I-T department has prepared a list of those who didn’t file returns at the start of FY 2021-22, taking previous years 2018-19 and 2019-20 into account.
To enforce the rule, the Central Board of Direct Taxes has introduced a utility tool, Compliance Check for Section 206AB and 206CCA.
Monthly salary payments, Interest earned on fixed deposits, Contract payments exceeding the limit of Rs 30,000, Dividend income exceeding the limit of Rs. 5000, etc. are subject to TDS under I-T Act.
Even professional and technical services fee exceeding the limit of Rs. 30,000 and sale of land or property with a value exceeding Rs. 5o lakhs comes under the scanner of TDS.
Certain exemptions are also provided from tax deduction for individuals and Hindu Undivided Family (HUF) with conditions applied. Also, TDS rate of interest also varies for different categories.
Many Chartered accounts have flagged technical glitches in the new IT website
