Changes from 1st April that will affect your life: Top 7 things that you must know now
Changes from 1st April: The Financial Year 2021-22 is about to begin from 1st April, 2021. From next month, there are some major changes taking place which are going to affect your money matter to a large extent.
Changes from 1st April: The Financial Year 2021-22 is about to begin from 1st April, 2021. From next month, there are some major changes taking place which are going to affect your money matter to a large extent. Changes in LPG cylinder price, new salary structure from April 2021, rise in NPS fund manager's charges, banking rules due to merger of banks, income tax rule changes in terms of EPF investment, etc. are some of the glaring changes that are going to take place from 1st April 2021. Here are the top 6 changes that are going to have its direct impact on your budget and monetary affairs.
LPG cylinder price
On the first date of every month, the central government announces the LPG cylinder price. In March 2021, LPG price in New Delhi was increased from Rs 769 per cylinder to Rs 819 per LPG cylinder price. Since petroleum prices in the global markets are expected to rise in the next month, there can be further rise in the LPG cooking gas price on 1st April 2021. Photo: PTI
Salary structure from 1st April
There are speculations that the Narendra Modi Government may incept New Wage Code Bill in the next financial year i.e. FY 2021-22. If the new wage bill is implemented, then it will have a great impact on one's take home salary as the new bill has provision to curb allowance around 50 per cent. In other words, in new wage code, one's basic salary will become at least 50 per cent of one's net CTC. Once, the basic salary will go up, one's PF contribution and gratuity conribution will also rise that means, one take home salary will slightly go down once the new wage code bill gets implemented. However, lesser take home salary would mean higher retirement fund accumulation as the PF and Gratuity contribution will go up in the new salary structure getting implemented in FY 2021-22. Photo: Pixabay
NPS fund managers to charge more
The Pension Fund Regulatory and Development Authority (PFRDA) has allowed pension fund managers (PFMs) to charge their customers higher fees from 1 April. With the hike in fees, most PFMs will turn profitable. The old cap of 0.01 per cent of assets under management (AUM) on fees forced PFMs to operate with extremely low costs. The new cap will allow most to turn profitable. Photo: Pixabay
Bank credentials' of 7 public sector banks
If you have bank account in any of these seven public sector banks — Dena Bank, Vijaya Bank, Corporation Bank, Andhra Bank, Oriental Bank of Commerce, United Bank of India and Allahabad Bank — then your passbook and cheque book will become non-functional from 1st April 2021. This will happen because of the merger of these banks in various other banks. Dena Bank and Vijaya Bank have been merged with Bank of Baroda, Oriental Bank of Commerce and United Bank of India have been merged with Punjab National Bank (PNB), Corporation Bank and Andhra Bank have been merged with Union Bank of India. Photo: Reuters
Income Tax rule on EPF
From 1st April 2021, one's investment in EPF account is no more free from the income tax. From 1s April 2021, one's investment in EPF above Rs 2.5 lakh in a financial year is taxed. One's EPF interest on EPF investment above Rs 2.5 lakh in a particular year is taxable. Photo: Pixabay
Income Tax rule on TDS
Income tax rule for TDS (Tax Deducted at Source) will get changed from 1st April 2021, which is just a few days away. In her budget speech, Sitharaman said that if a person doesn't file income tax return (ITR), then in that case, the TDS rate on bank deposits would double. That means, even if an earning individual doesn't fall in the income tax slab, the TDS rate levied on them will be doubled (in case the earning individual does not file ITR). Photo: Reuters
LTC cash voucher scheme
The central government notified the Leave Travel concession or LTC cash voucher scheme's exemption in place of a leave travel concession (LTC). Under this scheme, an employee can claim an exemption under LTC allowance against the purchase of specified goods or services. This scheme is only available till 31st March 2021, i.e. money must be spent by this date to avail of the scheme. Photo: Pixabay