Every year new financial year starts on April 1. Every year some changes happen from this date which directly and indirectly affects your pocket.In this context, let us see what changes major changes are going to happen in this new financial year.
The merger of 8 public sector banks
The second biggest change that is going to happen from April 1 is the merger of eight public sector banks. After the merger of eight banks such as Dena Bank, Vijaya Bank, Corporation Bank, Andhra Bank, Oriental Bank of Commerce, United Bank of India, Allahabad Bank and Syndicate Bank these bank’s customers will have to change their important bank documents including cheque book and passbook. If your account is also in these banks, then this will affect you.
Also read: Banking Failures in India
Changes in the rules of PF
According to Finance Minister Nirmala Sitharaman’s announcement, investing up to 5 lakh rupees in a financial year will not attract any tax on the interest. If you have invested more than that, then the income from the interest of the additional amount will come under the taxable income. Currently, the interest rate on PF is 8 per cent and the interest income is completely tax-free. This rule will come into force from 1 April 2021.
Income tax changes
Finance Minister Nirmala Sitharaman has provided many strict rules related to ITR. This time the government has made preparations to crack down on those who do not file ITR to save TDS. If you do this too, be careful. To motivate taxpayers to pay tax, it has been announced to add section 206AB in the Income Tax Act 1961.
This section provides for a higher rate of TDS / TCS to be applied if the transactions are done with the non-filers of Income-tax Return.
New wage code
The government is going to implement the new wage code. This rule will have an impact on private companies and people working in contracts. According to the new rules, the contribution under the provident fund and gratuity will be increased, which can reduce the in-hand salary but increase the savings. According to the new wage code, the allowance given to an employee cannot exceed 50% of the total salary. Companies will have to increase the basic salary to improve it, which will increase the amount of provident fund and gratuity.
Change in TDS rules
Now in addition to salary income, income from other sources, such as dividend income, capital gains income, bank deposit interest income, post office interest income will be pre-filled in ITR form. Till now taxpayers had to calculate it separately. Due to lack of diligence, many times taxpayer unintentionally forget to disclose such incomes. Now all this information will come pre-filled.
E-invoices mandatory for certain companies
The government has made it mandatory for companies with a turnover of more than Rs 50 crore to make e-invoice for B2B (between companies) transactions from April 1. The Central Board of Indirect Taxes and Customs (CBIC) said in the notification that e-invoicing will be mandatory from April 1 for companies with a turnover of more than Rs 50 crore.
LPG and domestic gas prices are revised on the first of every month. LPG prices have already reached Rs 819 in Delhi. In such a situation, people will now have to keep an eye on gas prices.