As we are going to start a new Financial year below is a list of compliances or changes under various laws which will be effective from 01.04.2021.
| Sr No. | Particulars | Changes |
| Income tax Update | ||
| 1 | TDS/TCS rate | Due to Covid-19, TDS/TCS rate has been reduced by 25% from 14.05.2020 – 31.03.2021 by press release issued on 13.05.2020.
From 01.04.2021, original TDS/TCS rates will be applicable. |
| 2 | EPF Contribution | Interest on EPF Contribution above Rs 2.5 lakh
If an employer and employee both contribution to such fund then the limit is Rs. 2.5 lakhs. |
| 3(a) | Higher TDS | Under section 206AB Non-filers will face higher TDS.
Under the proposed section TDS rate in this section will have twice the rate specified in the relevant provision of the Act, or twice the rate or rates in force, or the rate of 5%. Effective from 01.07.2021. |
| 3(b) | Higher TCS | Under section 206CCA Non-filers will face higher TCS.
Under the proposed section TCS rate in this section will have twice the rate specified in the relevant provision of the Act, or twice the rate or rates in force, or the rate of 5%. Effective from 01.07.2021. |
| 4 | Unit Linked Insurance Plans (ULIPs) | Unit Linked Insurance Plans (ULIPs) becomes taxable if total Premium paid exceeds Rs. 2,50,000 for any number of ULIP policies issued after 01.02.2021. Proceeds will be taxable as capital gain.
(Even if the premium is less than 10% of the actual sum assured) |
| 5 | Changes in ITR filing Timelines | The last date to file a revised income-tax return or belated return for FY 2020-21 will now be December 31 instead of March 31. |
| 6 | Extension of home loan interest tax break | The First time home buyers, can avail deduction on account of home loan interest up to Rs 1.5 lakh which was available on loans taken up to March 31, 2021, has now been extended by one year to March 31, 2022. (Section 80EEA) |
| 7 | PAN Linking with Aadhar Card | PAN if not linked with Aadhaar by 31 March’2021 shall remain inoperative till such period, it is linked. Inoperative PAN means TDS will be deducted at higher rates, ITR cannot be filed and a penalty of 1,000/- may be imposed. |
| 8 | TDS Return Late Fees | 31.03.2021 is the last date to file Q1 & Q2 TDS Returns of FY 2020-21 without Late Fee.
Failing to do so the interest will be calculated from 31st July & 31st October for Q1 and Q2 respectively of Rs. 200 each day maximum to TDS amount. |
| 9 | Section 194Q | TDS on goods applicable from– 01.07.2021 |
| 10 | Depreciation on Goodwill | No depreciation on goodwill will be allowed w.e.f 01.04.2021 |
| 11 | Trusts registered under 80G(5) | Trust registered under 80G(5) needs to file a form with the income tax department, providing the details of donation received. |
| 12 | Charitable Institutions/Trusts Re-Registration | Charitable Institutions/Trusts already registered with Income Tax Department will have to re-register themselves in 2021-22 in Form 10AB. Also, fresh registration will be made via this form now.
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| Company Law update | ||
| 13 | Audit Trail Mandatory | Every company which uses accounting software for maintaining its books of account, shall only use a software that has a feature for recording audit trail of each and every transaction, creating an edit log of each change made in the books of accounts along with the date when such changes were made and ensuring that the audit trail cannot be disabled.” |
| 14 | Form CSR-1 | Every entity (Trust/ societies) that intends to undertake any CSR activity will have to register itself with the Central Government by filing the form CSR-1 electronically with the Registrar of Companies, with effect from April 1, 2021. |
| 15 | CARO 2020 | CARO 2020 shall be applicable from 01.04.2021 |
| GST Update | ||
| 16 | E-Invoicing | E-Invoicing is Mandatory for Registered Person under GST if Turnover for the FY 2020-21 Exceeds Rs. 50 Crores. |
| 17 | HSN/SAC Code | HSN/SAC code is mandatory for all. |
| 18 | Quarterly Return Monthly Payment | Registered Person Wanting to opt IN/Out for QRMP Scheme for FY 2021-22 may apply for change between March-21 to May-21. |
| 19 | Composition Scheme | Regular Registered Persons wanting to opt for the Composition Scheme for FY 2021-22 may apply for change on or before 31/03/2021. |
| 20 | Refund time limit | Refund time limit of FY 2018-19 can be claimed before 31st March 2021 by applying RFD-01. |
| 21 | Export/Supply to SEZ units | Registered Persons who want to Export/Supply to SEZ units without payment of tax are required to obtain/Renew LUT for FY-2021-22 on or before 31st March, 2021 for FY 2021-22. |
