New Income Tax Rules From April 1: ITR To Be Filed Using Form 130

New Delhi: With the beginning of the new financial year from April 1, many major changes are going to be implemented which will impact the pockets of common people and their everyday financial processes. From income tax to banking, gold loans and digital transactions, many rules have been amended, which will have a direct impact on employees, pensioners and investors. The government says the purpose of these changes is to increase transparency and make the system more streamlined.

Will Form 130 now be applicable in place of Form 16?

The biggest change from the new financial year will be seen in the documents related to income tax. Form 16, which was given to employees till now, will be discontinued and Form 130 will be issued in its place. This form will also be in three parts—Part A, B and C—in which the employee's income, TDS and other important information will be recorded.

Will pensioners also get the new form?

Now banks will also issue Form 130 every year for pensioners. However, Part C will be included in this only if their pension income is subject to tax. This form will be made available by June 15 every year so that the process of filing returns can be easy.

Will there be increased strictness on crypto transactions now?

The government has also tightened the rules related to cryptocurrency. Now the exchange selling crypto will have to deduct TDS on the transaction. This will enable the government to get complete information about investors and will help in curbing tax evasion.

Will it be easy to take gold loan now?

The rules related to gold loans have also been changed. Now the loan-to-value ratio on loans up to Rs 2.5 lakh has been increased from 75 per cent to 85 per cent. This means that customers will now be able to take out more loan against the same gold than before.

Has the TDS limit on interest income changed?

If a person's interest income on bank or post office deposits exceeds Rs 50 thousand in a financial year, then TDS will be deducted on it. For senior citizens, this limit has been fixed at Rs 1 lakh, which gives them some relief.

Will there be changes in banking and ATM rules also?

Now withdrawals from ATM through UPI will also be counted towards the free transaction limit. Free withdrawal facility will be available three times in metro cities and five times in non-metro cities, after which a fee will have to be paid. Some banks have also set daily withdrawal limits.

Have there been changes in FASTag and train ticket rules also?

National Highway Authority's annual Fastag has now become a bit expensive. At the same time, the rules for train ticket cancellation have also been made strict – now refund will be available on cancellation only up to eight hours before the journey.