New income tax law comes into force in the country from today, 1961 law ended, these 10 rules including HRA will change, read this news to avoid inconvenience

10 major changes have been made in the new law, from claiming HRA to ITR deadline and year for filing ITR. Besides, changes have also been made in Form 16 and other income certificates. Let us know what will change under the new law:-

1. Tax Year: : Now the hassle of ‘FY’ and ‘AY’ is over
Financial Year (FY) and Assessment Year (AY) have been omitted while filing ITR. To make it easier, only one tax year has been kept. Earlier there used to be a lot of confusion regarding financial year and assessment year, which has now been changed.

2. Strict rules of HRA
Now, for exemption from house rent allowance i.e. HRA, it will be mandatory for the landlord to provide PAN and proof of rent payment. However, now Pune and Ahmedabad have also been included in the list of metro cities like Delhi, Mumbai, where 50% HRA exemption will be available.

3.ITR deadline
There has also been a change in the deadline for filing ITR under the new law. There is no change in the last date for submission of ITR-1 and ITR-2, which is July 31. But the deadline for ITR 3 and ITR 4 has been extended to 31st August.

4.Higher tax for F&O traders
Under the new law, the rules have also changed for those trading in the stock market. Trading in derivatives has become more expensive with the increase in Securities Transaction Tax (STT). Securities Transaction Tax (STT) under Futures and Options (F&O) has been increased from 0.02 per cent to 0.05 per cent and tax on option premium and excise on options has been increased from 0.1 per cent and 0.125 per cent to 0.15 per cent.

5.Change in PAN rules
Applying for PAN card only on the basis of Aadhar card is no longer valid. Applicants will have to use some more documents along with it. Along with this, PAN has been made mandatory for cash deposits of Rs 10 lakh or more in a financial year, purchase of vehicles worth more than Rs 5 lakh, payment for hotels or events of more than Rs 1 lakh and real estate transactions of more than Rs 20 lakh.

6.Tax free limit on meal card
Tax exemption on food cards given by the company has been increased to Rs 200 per meal from the earlier Rs 50 per meal. This benefit applies to food and non-alcohol drinks provided by companies.

7. Income tax form
Now Form 130 will be given in place of Form 16. Form 131 will be given in place of Form 16A, Form 168 in place of Form 26AS, Form 138 in place of Form 24Q and Form 140 in place of Form 26Q. Similarly, the names of other forms have been changed. However, there is no change in their work. Only the name has changed.

8.Gift and Voucher Discounts
The annual tax free limit on company gift cards, vouchers and coupons per employee has been increased from Rs 5,000 to Rs 15,000. This benefit will be given under both the old and new tax systems.

9.Rebate in education allowance
There has been a major increase in the allowances for children under the old tax system. Education allowance per child has been increased from Rs 100 to Rs 3,000 per month. Whereas hostel allowance has been increased from Rs 300 to Rs 9,000 per month.

10.Separate tax on share buyback
Earlier, presumptive dividends were taxed at slab rates, but now they will be taxed under capital gains. This means that now you may have to pay more tax. This tax will be around 30 percent on individual promoters, while around 22 percent tax will be levied on company promoters. STCG or LTCG tax may be imposed on the retail investor depending on the holding time.

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