ALERT! Keep In Mind While Informing ITR About Salary And Withdrawing Money From PF

The govt has recently made changes in many rules related to tax and PF. Keep these in mind while filing returns so that you do not have to face problems like getting notices from the tax department.

ITR

It is that time of the year when everyone has started filing income tax returns. The government has made changes in many rules related to tax and PF due to the Covid-19 pandemic. Due to the pandemic, many people lost their jobs, many suffered deductions in their salary and some have withdrawn money from the EPF fund. The money withdrawn from the government account has been made tax free but it has to be shown while filing the EPF Income Tax Return (ITR). There are many things to keep in mind while filing ITR.   

Due to Covid-19, many employees have faced deductions in salary or in some cases monthly salary has been postponed. Often employees are not worried about paying tax because the company usually files it. But if the company pays less tax in the event where salaries were deferred, then employees may have to face the problem. In such a situation, you should fill the tax after evaluating the salary, so that you can avoid penalty from the tax department.

The government had given many exemptions for withdrawing money from the EPF fund. The government had given this exemption to provide financial relief to the people facing problems in the Covid-19 pandemic. The money withdrawn from the EPF fund was made tax free but people still have to inform about it while filing ITR.   

A large number of employees are doing work from home during Covid-19. If the employee has been paid by the company for furniture or other facilities then it will come under the purview of tax as companies do not deduct TDS on such payments.

The government has made financial help received for the treatment of the Covid-19 etc. tax free. But you need to show this in the exemption section while filing the ITR for this financial year.