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The Insights for April- From EPF to Salary Structure

With the commencement of April, a new change in the basic policies is big news. And the big news is something which you’ll get here and that too with complete insights. Be it the merger of the renowned banks or the new salary structure, get insights into everything here.

The big news is something which you all need to know about because this is way too important for everyone. This April, not only the summer heat arrived but with it arrived the big news too. So, guys, gear up to know about the big news and the insights for April. To know about the recent policy changes, check out below.

  • The Merger Of 8 Banks Comes into Force- From April 1st-8th cheque books of the 8 most renowned banks will become invalid. The banks are namely, Allahabad Bank, Dena Bank, Vijaya Bank, Andhra Bank, Corporation Bank, Syndicate Bank, Oriental Bank of Commerce, and United Bank of India. Not only the cheque books but also the IFSC and MICR code, and branch address will also change.
    • What the Members Need to Do? – The members of these banks need to update their banking financial details after getting their new checkbook and passbook. And the people having an account in the Syndicate Bank can use their existing checkbook till June 30th.
    • The Merger Process- Dena Bank & Vijaya Bank have been merged with Bank of Baroda as of April 1st,2019. Oriental Bank of Commerce & United Bank of India merged with Panjab National Bank on April 1st,2020. Syndicate Bank has been merged with Canara Bank; Allahabad Bank has been merged with Indian Bank. While Andhra Bank & Corporation Bank merged with Union Bank of India.
    • New checkbooks and passbooks will be issued to the customers on April 1st. 2021.
  • The New Labour Laws- The New Labour Laws will come into effect from April 1st,2021. The New Labour Laws will also lead to a change in the salary of the workers from April 1st onwards.
    • Salary structure- The new wages code makes it mandatory for organizations to make sure that 50% of employees’ CTC is their basic salary. The remaining 50% consists of employee allowances like overtime pay and house rent.
    • Increase in Gratuity Cost of Organizations- As the basic salary is limited to 50% of CTC, the gratuity bonus paid to employees will increase.
    • 48 Hours Work Time for a Week- The maximum limit for a one-week work capacity is 48 hours as set by the government. So, the employers are free to choose 4 days in a week to work for 12 hours shift. The rest of the 3 days will be off.
    • Women will be able to work for every type of job in an organization because of these New Labour Laws.
  • The New ITR Rules for Senior Citizens- The new rules of ITR are launched for senior citizens of the age 75 and above. It means that the income from pension and interest from fixed deposit in the same bank would be exempted from filing ITR from April 1st, 2021. The exemption is only available to those senior citizens who have no other income but depend on pension and interest.
  • No More Autopayment For Debit & Credit Card- RBI has issued a new policy stating that no more autopayments for Debit and Credit card will be allowed. It commences from April 1st, 2021. Authentication will be required by the customer for making payments. A pre-transaction notification to the cardholder has to be sent by the issuer. This has to be sent at least 24 hours before the actual charge. 
  • Higher TDS & TCS- Finance Minister, Nirmala Sitharaman proposed higher TDS & TCS to make more people file an income tax return (ITR). New Sections 206AB and 206CCA are launched in Income Tax Act. It acts as a special provision for the deduction of higher rates of TDS and TCS. It is for the individuals who haven’t paid the ITR. But they have TDS and TCS deductions of more than INR 50,000 in the last 2 years. Then they will have to pay TDS and TCS subject to a minimum of 5%.
  • Tax Rules for Employees Provident Fund- The interest on annual employee contributions to EPF at INR 2.5 Lakh and above will be taxable by the government. Finance Bill has also raised the limit to INR 5 Lakh, subject to certain conditions. The increased tax limit is appliable only to those PF contributors where there is no employer contribution.
  • Dual Airbags Mandatory- The government has made dual airbags mandatory for all passenger cars to promote passenger safety on the road. It is mandatory for all cars manufactured in India starting from April 1st,2021-August 31st,2021.
  • Covid-19 Vaccination Drive For 45 Plus – From April 1st,2021 the covid-19 vaccination drive for citizens above 45 years of age will begin. The eligible user can book their slot either offline or online.
  • Post Office Savings Account- According to the latest news, money withdrawal from a post office has been limited to just four transactions. If there are more than four transactions, one will be charged 0.005% of net amount withdrawal on transactions beyond the limit.

So, guys, this was all about the insights for April. And hope it will be helpful to you all and get ready for the insights of April beginning from April 1st,2021.

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