There will be significant changes in the rules related to cooking gas, PF, income tax, insurance, pension from April 1. In fact, in the General Budget 2021, there was a provision to set a tax exemption limit for interest on Employees Provident Fund (EPF) and Voluntary Provident Fund (VPF), which is to come into force from 1 April. Apart from this, there can be significant changes in the prices of the census, simple pension scheme.
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 by normal rates. This will only apply to the contribution of the employees, not the contribution of the employee (company). This rule will be applicable from 1 April. Actually, the employees should save tax by depositing more money in PF because till now the interest of PF was outside the purview of tax. Under the existing provisions, the interest of Employees Provident Fund, Voluntary Provident Fund and Exempted Provident Fund Trusts is exempt from tax, no matter how high the PF contribution is. This new provision of the budget will have a direct impact on people with high-income salaries, who use the Voluntary Provident Fund for tax-free interest.
Exemption for filing income tax return to super citizen
People older than 75 will no longer have to file income tax returns. This 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 pension.
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 tax.
Simple pension scheme will start from April 1
Insurance regulator IRDA has asked life insurance companies to introduce the Saral Pension Scheme from April 1 this year. Under the Saral Pension Plan, insurance companies will have the option of giving only two annuities (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.
LPG prices will change from April 1
On the first date of every month, oil companies make changes in the prices of LPG cylinders. Cylinder prices were also increased last month. Now it has to be seen whether the companies increase the price of cylinders this month.