April 1: Money Changes That Will Impact Your Year Ahead
From the new tax rates on your Employees’ Provident Fund to relief to senior citizens over 75 years of age from filing income-tax returns, here are all the money changes and rules effected April 1.
April 02, 2021 / 11:02 AM IST
April 1 marks the start of a new financial year. It’s also considered to be an important day to start new things, especially with your money box. Typically, new charges and regulations also get implemented on this day as planning for your taxes, expenses and also income get synchronized at the start of the new financial year.
This year too, expect several new charges and rules too. But it’s not just the beginning of new things. The end of the current financial year (2020-21) also marks the end of a few sops or relaxations that were given to us in light of the on-going Covid-19 pandemic. For instance, if your driver’s license or its registration certificate or fitness certificate had got expired last year on or after February1 , 2020, the government had given four extensions so far to get them renewed. The pandemic had limited our movement and many of us had not stepped out of our homes to get these licenses or certificates renewed. The fourth and last such extension will be expire on March 31, 2020.
In 2020-21, nearly eight banks got merged with bigger banks. These mergers are now complete and it’s time for customers of merged banks to start life with the new banks. Effective April 1, your old banks’ cheque books and passbooks become invalid. Make sure that your new bank has already given you the new cheque books, passbooks and your new account details.
Budget 2021 announced that interest earned on investments in Employees’ Provident Fund (including through your Voluntary Provident Fund) over Rs 2.5 lakh will be taxed. It also said that resident senior citizens aged 75 years or more earning pension income and interest income from the same bank would no longer need to file their income-tax returns if depositors fulfill certain conditions.
These and other such Budget announcements would be implemented, too, on April 1. There’s a small caveat though. These announcements are yet in the shape of a Bill waiting to be approved by both houses of the Parliament. Only after their approval, would these become a law. But typically, they do get approved and become a law.
Here is a comprehensive list of everything that’s going to change your money lives on April 1.