New financial policies are implemented throughout the year. In most cases, the changes are simple and gradual that we don’t tend to pay a lot of attention to. However, in order to be financially smart, it is important to monitor such changes. Various changes in this financial year are going to be implemented that will have an impact on your finances.
Yet you seldom observe such changes. Now you need to inculcate those changes and need to ruminate about for a while before entering into a new financial year.
Let’s take a look at the top 5 upcoming changes in this financial year.
1. Wage Code Bill
A new wage code Bill may implement in the financial year 2021-22. If the new wage bill implemented then it will have a great impact on one’s take-home salary as the new bill has provisions to curb allowances around 50per cent. In other words, in the new wage code, one’s basic salary will become at least 50per cent of one’s net CTC.
With the implementation of new changes in this financial year in the wage code, one’s basic salary will increase. That also means that one’s PF & Gratuity contribution will also rise resulting in a lower net take-home salary. A lesser take-home salary would mean higher retirement fund accumulation.
2. Changes In Employees’ Provident Fund Scheme
From 1st April 2021, your investment in EPF (Employees’ Provident Fund) above 250,000 INR in a financial year is taxed. Having said that now your EPF account is no more free from income tax.
3. Pension Fund Managers can charge higher fee
From 1st April, The pension Fund Regulatory and Development Authority (PFRDA)has allowed pension fund manager to charge higher from their customers. However, higher fee will turn PFRDA more profitable.
4. Higher fuel prices
Experts believe that petroleum prices in the global market will rise. So, there can be a further rise in the LPG cooking Gas price from 1st April 2021.
5. Changes in banking practices
Your passbook and cheque book will become non-functional from 1st of April 2021. If you have an account with these seven banks – Dena Bank, Vijaya Bank, Corporation Bank, Andhra Bank, Oriental Bank of commerce, United Bank of India and Allahabad Bank because of merger of these banks with various other banks like Bank of Baroda, Punjab National Bank and Union Bank of India.
These changes in the financial year are going to be applicable from the 1st of April 2021. While some of these changes can have a bigger impact and few others may not. Nonetheless, it is equally important to stay updated on such changes for better planning of your finances.