194Q – TDS to be deducted @0.01% on purchase of goods if the turnover exceeds Rs.10 Cr and the purchases for the year exceeds Rs.50 lakhs. – Any person being a buyer shall deduct TDS @ 0.01% on purchase of goods where the value of such goods exceeds Rs.50 Lakhs provided that his turnover/gross receipts during the previous year exceeds Rs.10 Cr. This provision was made effective from 01/10/2020.
Senior citizens of 75 years and above with only pension income are exempt from ITR filing. – Resident Senior citizens above the age of 75 years having only pension income are exempted from filing ITR. However this exemption is effective only from the FY 2021-22. Further, the rule prescribes form 12BBA to be furnished by the senior citizen to the bank. TDS will be then deducted by the bank and Form 16 shall be issued. If the senior citizen has multiple bank accounts he/she is not eligible for this exemption.
Dividend Income is included in ITR for the year ended 31st March 2021. – Previously dividends received from Indian companies were exempt from tax but the domestic company was liable to pay dividend distribution tax. The Finance Act 2020 has now removed the liability on the part of the domestic companies to pay DDT and adopted the classic system of taxing the dividend income in the hands of the investors.
Tax on income of certain domestic companies/ Individuals – at lower rates without claiming deductions – A new option is provided to Individuals/ HUF/ Cooperative societies to pay tax at concessional rates applicable from the FY 2020-21. However, deductions under chapter VI A, standard deduction and allowances to salaried employees, Setting off of losses and unabsorbed depreciation shall not be allowed.
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