Financial Year 2020-21 (April-March) is about to end, and new Financial Year 2021-22 is going to begin from 1st April 2021. With the arrival of the new financial year, there are some major changes taking place which will affect an earning individual’s money matters. From changes in LPG cylinder price, banking rules due to merger of banks, income tax rule changes in terms of EPF investment, TDS/TCS deduction, etc. are some of the big changes that are going to take place from 1st April 2021. We list out the top 5 changes that are going to have its direct impact on your budget and monetary affairs.
1/5 LPG Cylinder Price
On the first date of every month, the central government announces the LPG gas price. In March 2021, LPG price in New Delhi was increased from Rs 769 per cylinder to Rs 819. Since petroleum prices are linked to international markets and the crude oil prices are expected to shoot further in the global markets, there can be further rise in the LPG gas price on 1st April 2021. Photo: Reuters
2/5 NPS account charges of fund managers
The Pension Fund Regulatory and Development Authority (PFRDA) has allowed pension fund managers (PFMs) to charge their customers higher fees from 1 April, a move that could attract more foreign investment in the sector. The pension regulator had proposed the higher fee structure in a request for proposals (RFP) issued in 2020. This was to take effect after a new round of licensing for PFMs, which has now concluded, said a person with knowledge of the matter on condition of anonymity. Photo: Pixabay
3/5 Banking credential of these banks to become non-functional
If you have bank account in — 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 seven public sector 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
4/5 Income tax rule change on EPF
From 1st April 2021, one’s investment in EPF account is no more fully exempted 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: Reuters
5/5 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: Pixabay
