The new wage law could take effect from April 1 The celery structure will change

The new wage law could take effect from April 1

The celery structure will change

A number of major changes are going to take place in the new financial year i.e. from April 1, including the salary structure and income tax rules. It will have a direct impact on the life of the average payer. The new labor law is likely to come into force without making any changes to the existing rates and slabs of income tax. Those changes may reduce the pay that comes in handy, but the savings will increase. The benefit will accrue to the employee at retirement and leaving the job. The central government may implement the Wages Code Act passed in Parliament in 2019 from April 1. From this the basic salary of the employee is compulsorily deducted from his CTC i.e.

Cost to company will be 50%. For example, if the monthly CTC is Rs. 40 thousand, the basic salary is Rs. It will be mandatory to keep 20 thousand. This will increase the employee's stake in the PF account. In addition, the number of graduates etc. will also increase. Thus, future savings will increase, but the monthly salary (cash in hands) will decrease slightly.

These important changes: ITR, PF will be changed in many including interest, two airbags mandatory in all cars

1. Four or five working days a week, 12 working hours: If the new labor law is implemented, there is a provision to reduce working days i.e. working days to four or five, but the daily working hours will be reduced to 12.

2. Tax on interest income on PF: In each financial year, Rs. There is no tax on interest income on investments up to Rs 5 lakh. If an employee invests more than that in PF, his interest income will be taxed.

3. LTC Encashment: Discount period for employees under Leave Travel Concession Voucher is till March 31, 2021. That means it can't be taken advantage of from next month.

4. Elderly allowed to file ITR: Pensioners above 75 years of age are now exempted from filing income tax returns. However, this facility will be available only to those whose source of income is pension and interest earned from it. Exemption from filing returns will be available only when the interest income is received from the same bank which has a pension account.

5. Pre-filled return form: To simplify the process of filing the return, the individual taxpayer will be given a pre-filled (pre-filled) return form, while not filing the return will now be doubly taxed.

6. Everything has to be stated in the return: From the new financial year, share trading, mutual fund transactions, dividend income and post office deposit or NBFC deposit information has to be given in the return. This information will also be given in Form 26AS.

7. Link page with Aadhaar will only work: Anyone whose PAN card is not linked to Aadhaar card will be lazy from April 1. The deadline to link pages and figures is March 31st.

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8. Checkbook-IFAC Code of Seven Banks: If your account is in Dena Bank, Corporation Bank, Andhra Bank, Oriental Bank of Commerce, United Bank of Commerce or Allahabad Bank, you will need to get a new passbook and checkbook from April 1. This will happen due to the merger of these banks.

9. Two airbags in all cars: All cars must have airbags on the driver and his side seat.

10. E-invoice mandatory: From April 1, e-invoice will be mandatory for all such merchants in business-to-business (BTB) business. Especially those whose turnover is Rs. More than 50 crores.