New salary structure and various other income tax laws will come into effect from 1st april,2021 in the new financial year. These laws will change the life of common people. Without any change in rates and slabs of income tax, new labour laws may come into effect.
Following are the laws which will come into effect from 1st april,2021:-
New wage code bill:-
With the implementation of new wage code bill, employees will receive basic salary only 50% of CTC (cost to company). It means if CTC is Rs. 60000 then reserving of Rs. 30000 as a basic salary will be essential. With this, gratuity and provident fund of employees will increase. Monthly income of employees will decrease and savings for the future will increase. It will be beneficial for an employees at the time of retirement, changing or leaving the job.
12 hours of work and 4 or 5 working days in a week:-
There is the chance of implementation of new labour laws. With this law, working days may decrease to 4 or 5 days and working hours may increase to 12 hours a day.
Tax on the income from interest of provident fund:-
If any employee is investing Rs.500000 in provident fund and earning interest on that then there will be no tax on that income. But if investment is more than Rs.500000 then government will levy tax on the interest of that investment.
LTC Encashment:-
Employees can take the benefit of leave travel concession vouchers till 31st march,2021. It means from next month, no one can take the benefit of this scheme.
Elders above 75 years will be exempted from filing income tax return:-
Elders above 75 years whose source of income is pension and interest on that pension will be exempted from filing income tax return. But they can take this benefit only if their interest income is coming from the same bank from where the pension comes.
Pre- filled return form:-
For making income return admission simple, personal taxpayer will receive pre-filled ITR form instead of new form. Taxpayer would face double TDS if ITR is not being filed.
Full information will be required to give in ITR:-
From the new financial year onwards, all information about share trading, mutual funds, post-office deposit, dividend income and NBFC deposit will be required to give in ITR. One can also see this information in form 26AS.
New chequebook and IFSC code of 7 banks:-
Seven banks have been merged by the central government. If anyone has account in dena bank, vijaya bank, corporation bank, andhra bank, oriental bank of commerce, united bank of commerce and allahabad bank then one has to take new chequebook and passbook from 1st april,2021.
Adhaar - PAN link:-
31st march,2021 is the last date for linking PAN and Adhaar card. If these are not linked then these may have no more use.
Two airbags in all cars:-
From 1st april,2021 every car manufacture company will be required to make two airbags in all cars. Airbag in next to driver's seat also becomes necessary.
Essential E- invoice:-
In B2B business, e- invoice will become mandatory from 1st april for all those businessmen whose turnover is more than Rs. 50 crore.
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