Tax on PF account
From April 1, the existing PF account can be divided into two parts, which will also be taxed. According to the rules, there will be no tax on contribution up to Rs 2.5 lakh in PF account. Interest earned on contributions above this will be taxed.
The Central Board of Indirect Taxes and Customs has reduced the turnover limit for issuance of e-invoice under GST to Rs 20 crore. Earlier this limit was Rs 50 crore. The new rules of GST are coming into effect from April 1.
You will not be able to make payments for investments in mutual funds by cheque, bank draft or any other physical medium. Mutual fund transaction aggregation portal MF Utilities (MFU) is discontinuing cheque-demand draft payment facility with effect from March 31. To invest in mutual funds from April 1, payment will have to be made through UPI or net banking.
Post Office Rules
The rules of post office are about to change. The interest earned on the Post Office Monthly Income Scheme, Senior Citizen Savings Account and Term Deposit Account will be credited directly to the account. Interest will no longer be available in cash. Therefore, from April 1, a savings account or bank account will have to be opened in the post office.
Shock to Home Buyers
First time home buyers will not get the benefit of 80EEA from April 1. In Budget-2021, the tax exemption under this section was extended till March 31. According to this, if the value of the house is less than 45 lakhs, then you can claim tax exemption of up to 1.50 lakhs on home loan interest payment. Now this facility will not be available.
Special FD Scheme
For senior citizens; SBI, ICICI Bank, Bank of Baroda, HDFC Bank had started a special fixed deposit (FD) scheme in Corona period. Senior citizens get more benefit in this. However, HDFC Bank and Bank of Baroda may discontinue this scheme from April 1.
From April 1, the tax rules on cryptocurrencies may also change. The Finance Minister had said that all virtual digital assets or crypto assets will be taxed at 30%. Apart from this, whenever someone sells a crypto asset, TDS will be deducted at one percent of its sale.
Axis Bank and PNB
Axis Bank have increased the minimum balance limit in savings account from Rs 10,000 to Rs 12,000. The bank has also changed the stipulated limit of free cash withdrawal to four times or Rs 1.5 lakh. On the other hand, PNB is implementing the Positive Pay System (PPS) rule from April 4. Under this, verification will be necessary for cheque of Rs 10 lakh and above.