The new financial year will start from 1 April 2021. Along with this, many rules are also going to change. Which will have a direct impact in the pockets of the people. The government has merged several banks. In such a situation, the check books of the old banks will be of no use. At the same time, the tax exemption limit on investment in PF is also going to apply. Let’s know about the 6 changes that will come into force on April 1.
The bank’s check book and passbook will be useless
The passbook and checkbook of Dena, Vijaya Bank, Corporation Bank, Andhra Bank, Oriental Bank of Commerce, United Bank of India and Allahabad Bank will become useless from 1 April. All these banks have merged with other banks. Dena and Vijay Bank have merged with Bank of Baroda. Oriental Bank and United Bank were merged with Punjab National Bank. Corporation Bank and Andhra Bank have been merged into Union Bank of India.
Change on EPF
Income tax department will not be fully exempted from investing in EPF account from April 1. Investment of more than 2.5 lakh rupees will be taxed in the financial year.
Elderly relief from tax return
The central government gave relief to the elderly aged above 75 years in this year’s budget. The Finance Minister has said that the elderly are dependent only on pension and accumulated interest income. They do not have to file income tax returns. The bank will deduct the required tax on their income.
Easy to return returns
Apart from the salary of taxpayers, the income from other sources will be known beforehand. Earlier, it had to be calculated separately. Now all the information will be pre-filled.
Rules on TDS
The income tax rule for TDS is changing from 1 April. If a person does not file an income tax return, the TDS rate on the amount deposited in the bank will be doubled. Even if the person does not fall in the income tax slab.
Pension fund managers will be able to collect fees
The Pension Fund Regulatory and Development Authority has allowed pension fund managers to charge higher fees from their customers. This will boost foreign investment. The pension regulator proposes a higher fee structure for proposals issued in 2020.
