Checkout what all will change from 1st April for you, as the new financial year kicks in

Mar 31, 2021

By: Vaamanaa Sethi

Credit: Pixabay

The financial year 2020-21 is coming to an end and the new financial year 2021-22 will begin on April 1, 2021.

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The new financial year is bringing in some major changes which are going to majorly affect your money matters.

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PAN-Aadhaar linking

The central government has repeatedly extended the last dates to link your PAN with an Aadhaar card. The last day to link is 31st March 2021, if you fail to link, your PAN card will become inoperative and you will not be able to conduct any financial transactions.

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Senior citizens exempted to file ITR

Senior citizens above the age of 75 years are exempted from filing income tax returns. Only those who are dependent solely on pension and interest for income will be eligible for the provision.

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Pension Fund Managers to charge more

On Pension Fund Regulatory and Development Authority (PFRDA) approval, Pension Fund Managers (PFMs) are allowed to charge higher fees from their customers from April 1. The new cap will be profitable for most PFMs.

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Bank credentials of these public sector banks

Your passbook and cheque book will become inoperative as these banks — Dena bank, Vijaya bank, Corporation bank, Andhra bank, and Oriental bank of Commerce have been merged with different banks.

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Income Tax on EPF

Investment in EPF accounts above ₹2.5 lakh will be taxable from April 1. Interest on EPF investment above ₹2.5 lakh in a particular year will be taxable.

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Don’t fail to file ITR on time

As announced by India’s Finance Minister Nirmala Sitharam in her budget speech, if a person fails to file Income Tax Return (ITR), then tax deducted at source (TDS) on bank deposits would double, even for those who don't fall under income tax slabs.

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Leave Travel Allowance

Announced by Finance Minister Nirmala Sitharam in October 2020, the scheme was to boost consumer demand and tax benefit to those who are unable to claim the LTC tax benefit due to COVID-19 travel restrictions. Under this scheme, employees can claim the exemption on LTA by purchasing goods and services of specified amount. The employees are required to submit their bills before 31st March 2021 to avail the tax benefit provided in the scheme.

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Reserve Bank of India says inflation will remain under 5.2 percent until March