Seven Rules Related To Your Life Will Change After Two Days; Know About Them Here

New Delhi, 30 March 2021:  there will be significant changes in the rules related to PF, income tax, insurance, and a pension from 1 April. The provision to set a tax exemption limit for interest on Employees Provident Fund (EPF) and Voluntary Provident Fund (VPF), mentioned in the General Budget 2021, will come into effect from 1 April. Apart from this, there will be significant changes regarding air travel, Cylinder prices, simple pension scheme.

A Saral pension scheme will start

Saral Pension Scheme is scheduled to start from April 1. Insurance regulator IRDA has asked life insurance companies to introduce the Saral Pension Scheme from April 1, 2021. Under the Saral Pension Plan, insurance companies will have the option of giving only two annuities. According to the guidelines issued by IRDA, it will not get maturity benefits under Saral Pension Plan. However, it will have an option to refund 100% of the purchase price.

There will be a change in PF rules from April 1

In the budget, interest on provident fund contributions above Rs 2.5 lakh a year will now be taxed at normal rates. It will be applied to the employees’ contribution, not the contribution of the employee (company). This rule will be applicable from 1 April. The employees should save tax by depositing more money in PF because PF’s interest was outside the taxation purview.

Under the existing provisions, the interest of Employees Provident Fund, Voluntary Provident Fund, and Exempted Provident Fund Trusts are exempt from tax, no matter how high the PF contribution is. This new provision of the budget will directly impact people with high-income salaries, who use the Voluntary Provident Fund for tax-free interest.

Exemption for filing an income tax return to super citizen

People older than 75 will no longer have to file income tax returns. It was announced by Finance Minister Nirmala Sitharaman in the budget speech this time. But this exemption will be left only to those whose income is nothing but a pension.

There will be changes in LTC

In this year’s budget, LTC has also been announced in the budget. The last time employees could not take advantage of LTC due to Corona. Now the government will pay them cash which will not come under the tax.

LPG prices will change from April 1

On the first date of every month, oil companies will make changes in LPG cylinders’ prices, and it may increase the cost of cylinders this month.

Air travel will become expensive

Air travel is going to be expensive from April 1. The Directorate General of Civil Aviation (DGCA) has increased Rs 40 for passengers for domestic passengers. Airport Security Fee (ASF) has been raised in air tickets. This airport security fee will be Rs 114.38 for international passengers.