Revision in PMAY subsidy, dual airbags in new cars to 'tax' on EPF — Top 5 changes that are happening from today
As we enter a new Financial Year today, there are 5 changes that is happening from Thursday (April 1, 2021) and will directly impact earning individuals.
As we enter a new Financial Year today, there are 5 changes that is happening from Thursday (April 1, 2021) and will directly impact earning individuals. It is important that we know these changes beforehand and act accordingly. From denial of subsidy to middle income group (MIG) in the Pradhan Mantri Aawas Yojana (PMAY) to mandatory dual air bags for front seat passengers, we list here 5 important changes coming into force from today April, 2021. Here is the list of changes.
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Revision in PMAY subsidy
From 1st April 2021, Middle Income Group (MIG) won't be given subsidy under PMAY. So, those earning individuals who have an annual income of Rs 6 lakh to Rs 18 lakh, they will be no more eligible for subsidy of up to Rs 2.35 lakh under PMAY scheme. However, PMAY subsidy of up to Rs 2.67 lakh for LIG (Lower Income Group) and EWS (Economically Weaker Section) would continue till 31st March 2022.
Dual Air Bags in new cars
From 1st April 2021, the Narendra Modi Government has made it mandatory for all automakers to manufacture new cars with dual air bang. In this provision, now car makers will have to give two air bags in the front row — one for the driver and one for the person sitting beside the driver. This new provision may lead to rise in new car prices across companies.
Provident Fund (PF) to become taxable
From 1st April 2021, one's provident fund (PF) contribution will become taxable if the net PF contribution is more than Rs 2.5 lakh in a particular financial year. In case the recruiter doesn't contribute, in that case the non-taxable PF limit will go up to Rs 5 lakh per annum. So, for private sector employees, non-taxable EPF limit is Rs 2.5 lakh while for the government employees the non-taxable PF limit will be Rs 5 lakh.
Bank credentials of seven banks
If you have bank account in any of these seven public sector banks — 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 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.
Heavy penalty for ITR non-filers
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).
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