The new financial year is set to begin on April 1. With this, many rules for employers, pensioners, ordinary people and banks are changing. The rules, which are set to change from the first date of next month, include a tax on investment in PF, new labor law, and income tax return. We are telling you 10 such rules so that you can be prepared in advance about these changes.
1. Tax on interest received on PF deposit
Tax on interest received from the Employees Provident Fund (EPF) was announced in the General Budget for 2021-22. Investing up to 2.5 lakh PF in the current financial year is tax free. If you invest more than that, you have to pay tax on the interest earned. If you deposit four lakhs of rupees annually, you will have to pay tax on your tax slab at an interest rate of Rs 1.5 lakh.
2. Changes in the rules relating to salary
The government is set to implement the new pay code from April 1. As soon as the new labor law changes, your salary changes. According to the new labor law, the wage should be 50% of the salary you received on this hand. That is, your salary structure may change from the 1st.
3. Pre-completed Income Tax Return Form
Individual taxpayers will now be given a pre-filled return form (pre-filled) before April 1, 2021, for the benefit of employees and to facilitate the process of filing income tax returns. This facilitates filing of returns.
4. Freedom to file returns for senior citizens
From 1 April 2021, citizens over the age of 75 are not required to file income tax returns. This exemption is granted to senior citizens who depend on pension or fixed deposit (FD) interest. In addition, senior citizens with income sources are required to file returns.
5. Double TDS for not filing returns
The Government has made changes in Section 206 AB of the Income Tax Act. Under this, if you do not file ITR now, you will have to pay double TDS by April 1, 2021. According to the new rules, TDS and TCL rates are 10-20%, which is usually 5-10%.
6. A dual air bag is required in the car
The safety standards for cars have been changing since April 1. It is now mandatory to install airbags to the driver and to the side seat.
7. The check books of these banks are worthless
If you have a bank account with Dena Bank, Vijaya Bank, Corporation Bank, Andhra Bank, Oriental Bank of Commerce, United Bank of India and Allahabad Bank, your passbook and checkbook will be useless from 1st April 2021. This change is due to the merger of these seven public sector banks into different banks.
8. Pension fund managers charge higher fees
It is important to know if you are investing in a pension fund. The Pension Fund Regulatory and Development Authority (PFRDA) has allowed the Pension Fund Manager (PFM) to charge higher fees to its customers from April 1. This move could attract more foreign investment in the sector.
9. You will not be able to hide your income
The PAN card only detects things like salaries and future funds so far. What mutual funds and other earnings systems are not automatically tracked, but PAN and Aadhaar will be linked from April 1, after which you will not be able to hide any investment. With Aadhaar and PAN link, the system automatically tracks your investment.
10. The late return filing rule changes
Due to the corona epidemic, the revised or delayed ITR filing period for 2019-20 was extended. But once again, the central government has changed the rules under the Finance Bill -21. Accordingly, if you file late income tax returns, you will have to pay late by April 1, 2021.
The key rules for PF will change from April 1, and they will be harmed