From PF to revenue tax to air journey, 10 methods your life will change from April

Take a have a look at key modifications which are going to happen from 1 April

Interest charges of small financial savings schemes to be decreased

Finance ministry slashed the rates of interest of small financial savings schemes for the primary quarter of the monetary yr 2021-22. For April-June quarter, Public Provident Fund will fetch an rate of interest of 6.4%. The curiosity for National Savings Certificate scheme has been decreased to five.9%. The rate of interest for the five-year Senior Citizens Savings Scheme has been lowered to six.5%. Similarly, the rates of interest for Kisan Vikas Patra, submit workplace financial savings deposits have additionally been minimize.

LPG cylinder costs to turn into cheaper

Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation have introduced to scale back the worth of home cooking gasoline (LPG) by ₹10 a cylinder from April

In Delhi and Mumbai, a 14.2 kg non-subsidised LPG cylinder will value round ₹809. A LPG cylinder will now be accessible at ₹835.50 in Kolkata. In Chennai, a LPG cylinders will probably be priced at ₹825.

Air journey to turn into costlier

Starting from this month, you air journey will turn into costlier. Aviation regulator Directorate General of Civil Aviation (DGCA) has hiked air safety charge (ASF). While the rise in ASF for home passengers is of ₹40, for worldwide passengers, the rise is of ₹114.38.

Saral Pension coverage

The Insurance Regulatory and Development Authority of India (IRDAI) has requested all life insurance coverage firms to mandatorily provide an ordinary particular person quick annuity product from April. Dubbed as Saral Pension, this plan will present a minimal annuity of ₹1,000 per 30 days, ₹3,000 per quarter, ₹6,000 per half yr, and ₹1,2000 every year. The minimal entry age to purchase this plan will probably be 40 years and the utmost will probably be 80 years. This will probably be be a single premium, non-linked non-participating quick annuity plan.

Standard private accident insurance coverage coverage

The insurance coverage regulator has directed all normal and well being insurers to supply an ordinary private accident insurance coverage product, commencing from 1 April. Named as Saral Suraksha Bima will provide a minimal sum insured of ₹2.5 lakh. Under this coverage, the utmost sum insured will probably be ₹1 crore. Sum insured provided ought to in multiples of ₹50,000, IRDAI stated, including insurers can provide on their very own past the talked about vary. Anyone over 18 years previous can purchase this coverage. The most age at entry is about at 70.

Tax advantages on Unit-Linked Insurance Products (ULIP)

In Budget 2021, the finance ministry introduced that the maturity positive aspects in Unit Linked Investment Plan (ULIPs) can be taxed if the annual premiums are ₹2.5 lakh or extra. The maturity quantity can be taxed at a price of 10% if its long-term achieve and on the price of 15% if its short-term achieve. Earlier, the maturity proceeds of ULIP schemes had been tax-free. This will influence just for these ULIP insurance policies that are purchased after 1 February, 2021. For those that pay annual premiums under ₹2.5 lakh, they’d nonetheless get the tax-exemption advantages.

Reduced interval for submitting the belated ITR or for revising your filed ITR

Earlier, in the event you didn’t file your ITR by the due date of 31 July, you would nonetheless file it by 31 March with late charge. Likewise, after having filed your ITR, in the event you observed any omission or mistake, you would revise the identical by 31 March of the identical yr. But, Finance Bill for 2021-2022 has proposed to scale back this time restrict by three months and due to this fact you’ll have time to file your belated ITR or revise your ITR until 31 December of the identical monetary yr.

New tax guidelines on provident fund

In Budget 2021, finance minister Nirmala Sitharaman introduced that curiosity on worker contributions to provident fund of over ₹2.5 lakh every year can be taxed. Later, the Centre elevated the deposit threshold restrict to ₹5 lakh every year in provident fund for which curiosity would proceed to be tax-exempt, if there is no such thing as a employer contribution. This restriction shall be relevant just for the contribution made on or after 1 April, finance minister Nirmala Sitharaman introduced earlier.

This transfer will have an effect on the high-income earners and High Net-worth Individuals (HNIs). Anyone who earns greater than ₹20.83 lakh a yr will appeal to his or her curiosity on EPF contribution being taxed. The salaried staff who use Voluntary Provident Fund to take a position greater than necessary 12% of primary pay, may even be impacted. This new rule will come into impact from April.

HSN code necessary for companies with over ₹5 crore turnover

On the Goods & Services Tax (GST) entrance, the technology of e-invoice by companies with turnover of over ₹50 crore will probably be necessary from April.

The Harmonised System of Nomenclature or HSN code may even be necessary on tax bill, ranging from April, finance ministry stated. Those with turnover of as much as ₹5 crore within the previous monetary yr, need to furnish four-digit HSN code on B2B invoices. Earlier, the requirement was four-digits and two-digits respectively. “This will assist tax officers with deeper information analytics for each merchandise provided and assist them in arresting tax evasion emanating from pretend invoices and irregular tax credit score claims,” Rajat Mohan, AMRG & Associates Senior Partner stated.

Senior residents above 75 years exempted from submitting revenue tax return

Senior residents above the age of 75 years, who solely have pension and curiosity as a supply of revenue will probably be exempted from submitting the revenue tax returns, ranging from 1 April. The exemption from submitting revenue tax returns can be accessible solely in case the place the curiosity revenue is earned in the identical financial institution the place pension is deposited, confirmed Archit Gupta, founder and CEO, ClearTax.

It have to be famous that the senior residents who’re above 75 years age, are usually not exempted from paying tax however solely from submitting revenue tax return (ITR) if they’re eligible to sure situations.

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