Income Tax Calculator: Rules to change from April 1 for taxpayers! Here is how you can save your money

Income Tax Calculator: In her budget speech, Finance Minister Nirmala Sitharaman announced that income tax rule for TDS (Tax Deducted at Source) will get changed from 1st April 2021, which is just a few days away. In her budget speech, Sitharaman said that if a person doesn't file income tax return (ITR), then in that case, the TDS rate on bank deposits would get doubled. That means, even if an earning individual doesn't fall in the income tax slab, the TDS rate levied on them will be doubled (in case the earning individuals does not file ITR).

Speaking on the change in income tax rule on TDS and TCS for an earning individual who does not file ITR, SEBI registered tax and investment expert Jitendra Solanki said, "In order to discourage the practice of not filing income tax returns by the persons in whose case substantial amount of tax has been deducted or collected, the union budget proposal says that a person in whose case TDS/TCS of Rs 50,000 or more has been made for the past two years and who has not filed ITR, the rate of TDS/TCS shall be at double of the specified rate or 5 per cent, whichever is higher. This provision shall not be applicable for the transactions where full amount of tax is required to be deducted e.g. salary income, payment to non-resident, lottery, etc."

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On whether the TDS interest rate would be applicable on the senior citizens who are more than 75 years, old Pankaj Mathpal, Managing Director, Optima Money Managers said, "Budget 2021 allows non-filing of ITR for those super senior citizens who have a single income source of pension. If a 75 plus year old person has a source of income other than pension too, then in that case the super senior citizen will have to file ITR and avoid double TDS interest rate charge being levied on them."