From April 1, these changes will affect your life: Learn about the big changes

From April 1, these changes will affect your life: Learn about the big changes.

    

Fiscal year 2021-22 is scheduled to start from 1st April. There are going to be some big changes next month that will affect your finances.

Fiscal year 2021-22 is scheduled to start from 1st April. There are going to be some big changes next month that will affect your finances. Changes in LPG cylinder prices, creation of new salary from April 2021, increase in charges for NPS Fund Manager, new rules for merger of banks, changes in income tax rules for investment in EPF, etc. will be applicable from 1st April 2021.

The price of an LPG cylinder will change

On the first day of every month, the central government announces the price of LPG cylinders. In March 2021, the price of LPG in New Delhi was increased from Rs 769 per cylinder to Rs 819. LPG cooking gas prices are expected to rise further on April 1, 2021, as global petroleum prices are expected to rise next month.

The new wage structure will be implemented

There is speculation that the Modi government may introduce a new pay code bill in the next financial year, i.e. in the financial year 2021-22. If the new wage bill is implemented, it will have a big impact on tech home pay, as the new bill provides for a reduction of about 50 per cent in allowances. The PF contribution and the gratuity contribution will also increase after the increase in the basic salary.

Increase the charge of NPS Fund Manager

The Pension Fund Regulatory and Development Authority (PFRDA) has allowed pension fund managers (PFMs) to charge their customers from April 1. Most PFMs will become profitable as fees increase. PFMs are forced to operate at a very low cost with an inset management (AUM) fee of 0.01 per cent on the old cap. The new cap will allow most to be profitable.

Merger of 7 banks

If you have an account with Dena Bank, Vijaya Bank, Corporation Bank, Andhra Bank, Oriental Bank, Antel F Commerce, United Bank India F India and Allahabad Bank among these seven public sector banks, your old passbook and check book became unusable on the 1st. Will go. April 2021. This will change as banks merge.

Income limit of investment in EPF

Investments in one's EPF account are not exempt from income tax from 1st April 2021. From April 1, 2021, tax has been levied on EPF investments above Rs 2.5 lakh in the financial year. EPF interest is taxable on EPF investments above Rs 2.5 lakh in a year.

Changes in income tax rules

Income tax rules for TDS (source on tax deduction) will be amended from April 1, 2021, Sitaram said in a budget speech that the TDS rate on bank deposits would double if a person does not file an income tax return. ). This means that even if an earner does not fall into the income tax slab, he will be charged in these circumstances.

LTC Cash Voucher Scheme

The central government announced the waiver of holiday travel relief or LTC cash voucher scheme. Under this scheme, an employee can claim exemption under LTC allowance against purchase of goods or services. The scheme is only available till 31st March 2021 i.e. money must be spent till this date to avail the benefit of the scheme.