Rules Changes From 1 April 2021: The new fiscal year will start from 1 April. Many important rules are going to change from the new financial year, which will have a direct effect on the people from the job. Actually, some new rules related to income tax and salary are set to change from April 1. The rules which are going to change include the rules related to tax, DA, ITR and income tax on PF. From April 1, there is a provision of tax on the deduction of more money in EPF. According to the announcements made in the budget, those above 75 years of age were relieved from filing income tax returns. So at the same time, it has been decided to take strict action against those who do not file income tax returns. All these changes are due from April 1, about which the budget was announced in 2021. Know about the major changes… ..
1. Tax on EPF contribution
Now up to 2.5 lakh investment in EPF will be tax free in a financial year. According to the new rules of income tax, from April 1, 2021, you will have to pay tax on the interest which will be earned as interest if you make more than 2.5 lakh rupees annually. Employees who have more income cannot save more tax through PF contribution, hence Finance Minister Nirmala Sitharaman announced it in the budget. However, the monthly salary of 2 lakh rupees will not affect this rule.
2. The elderly will not have to file tax returns
Senior citizens above 75 years are exempted from filing ITR. To reduce the compliance burden on senior citizens, Finance Minister Nirmala Sitharaman, while presenting Budget 2021, exempted those above 75 years from filing income tax returns (ITR). This exemption has been given to those senior citizens who are dependent on pension or interest on fixed deposits.
3. Action on not filing ITR
The central government has tightened the TDS rules to encourage filing of ITRs. For this, the government has added section 206AB to the Income Tax Act. According to the new rule, if the ITR is not filed, double TDS will have to be paid from April 1, 2021. According to the new rules, tax collection at source (TCS-TCS) will also be higher on those who have not filed income tax returns.
According to the new rules, from 1 July 2021, the Penal TDS and TCL rates will be 10–20 per cent, which is usually 5–10 per cent. For those not filing ITR, the rate of TDS and TCS will be doubled to 5 per cent or fixed rate, whichever is higher.
4. Post Office
Now you will have to pay a charge for withdrawing and depositing money from the post office account. If you have an account with India Post Payment Bank (IPPB), then from April 1, you will have to pay a fee on Aadhaar based payment system (AEPS) in addition to depositing or withdrawing money. This charge will be taken after the end of the free transaction limit.
5. LTC
The Central Government had announced exemption in Travel Leave Concession (LTC) scheme due to COVID-19. Travel Leave Concession (LTC) Cash Voucher Scheme will be implemented in the new financial year. The government announced plans last year for those who did not take advantage of the LTC tax benefit due to restrictions on travel due to the corona virus.
6. Pre-Field ITR Form
Individual employees will now be provided with a pre-field ITR form from April 1, 2021, for the convenience of employees and to simplify the process of filing income tax returns. This will make it easier to file ITR.
Note: Apart from this, if the new wage code is applied, the basic salary in your CTC should be 50 percent or more. With the introduction of new rules, your CTC may increase along with your basic salary. At the same time, in some reports, this medicine is being done that the DA of the central employees can also be increased.
7. Checkbooks will be changed by these banks
Punjab National Bank has said that the old checkbook and IFSC / AICR code of Oriental Bank of Commerce and United Bank of India will only work till 31 March. After this, you have to get a new code and checkbook from the bank.
8. Income will not be able to hide
It is necessary to have PAN card and Aadhaar card link from 1st April. If the PAN card is not linked to the Aadhaar card, the PAN number will also be included with a penalty of 10 thousand. You will not be able to hide any of your investment or income after PAN and Aadhaar are linked.
9. Pension fund managers will be able to charge more fees
The Pension Fund Regulatory and Development Authority (PFRDA) has allowed the Pension Fund Manager (PFM) to charge higher fees to its customers from 1 April. This step can attract more foreign investment in this sector. The pension regulator had proposed a higher fee structure for the proposals (RFP) issued in 2020. This was to take effect after a new round of licensing for PFM.
10. New Wedge Rule
From April 1, if the new wage rule of salary is implemented, there will be changes in your salary. According to the new wage code, the salary should be 50 per cent of the salary you receive in these hands. That is, the salary of basic salary, dearness allowance and retaining allowance should be half of your total salary.
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