Reserve Bank of India – Tenders
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The tender will be available at RBI portal (www.rbi.org.in). The Schedule of the tender is given below:
Principal |
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Month: March 2021
Reserve Bank of India – Press Releases
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As per Section 45 Z I of Reserve Bank of India Act, 1934, it has been decided that the Monetary Policy Committee will meet during 2021-22 on the dates as indicated below:
(Yogesh Dayal) Press Release: 2020-2021/1323 |
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Top 5 Lenders Of India Currently Providing Good Returns On Fixed Deposit
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Investment
oi-Vipul Das
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Fixed deposits (FDs) are stable investment options provided by banks and non-banking financial companies (NBFCs) that promise regular and stable returns along with tax benefits. Customers can invest a certain amount of money in the bank for a certain period of time, also known as a lock-in period, at a predetermined rate of interest. The depositor earns the amount deposited as well as compound interest at the end of the maturity period which generally ranges from 7 days to 10 or 20 years. The country’s largest lender, State Bank of India (SBI), as well as leading private sector banks of India like HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra Bank offer a variety of FD schemes with varying interest rates. Hence, after the latest adjustment on interest rates here’s what these 5 leading banks are currently providing on their fixed deposits.
SBI Fixed Deposit
The State Bank of India provides competitive interest rates on fixed deposits with terms ranging from seven days to ten years. Senior citizens are eligible for an additional 0.50 percent interest rate. The general public’s interest rates vary from 2.90 percent per annum to 5.40 percent per annum. SBI WeCare Deposit Scheme is a retail term deposit scheme for senior citizens. For tenure of 5 years and above, an additional premium of 30 basis points will be paid over and above the additional 50 basis points, which is currently capped at 6.20 percent. This is only valid for a short period of time, until June 30, 2021. For a deposit amount of Rs 2 Cr the below framed SBI FD Rates are in effect from January 2021.
| Tenure | ROI for general public | ROI for senior citizens |
|---|---|---|
| 7 days – 45 days | 2.90% | 3.40% |
| 46 days – 179 days | 3.90% | 4.40% |
| 180 days – 210 days | 4.40% | 4.90% |
| 211 days – 364 days | 4.40% | 4.90% |
| 1 year – 1 year 364 days | 4.90% | 5.40% |
| 2 years – 2 years 364 days | 5.10% | 5.60% |
| 3 years – 4 years 364 days | 5.30% | 5.80% |
| 5 years – 10 years | 5.40% | 6.20% |
HDFC Bank Fixed Deposit
HDFC Fixed Deposit comes with a tenure ranging from 7 days to 10 years. HDFC Bank FD rates for the general public vary from 2.5% to 5.5%. Whereas senior citizens will get an additional premium of 0.25% over and above the existing premium of 0.50%. HDFC Bank FD rates for senior citizens range from 3% to 6.25% respectively. HDFC Bank’s special fixed deposit (FD) scheme for senior citizens was recently extended for the third time. The ‘HDFC Senior Citizen Care’ scheme offers a 75 basis point higher interest rate on these deposits. The interest rate on a fixed deposit held by a senior citizen will be 6.25 percent if it is made under HDFC Bank Senior Citizen Care FD. These rates are in effect from November 13, 2020. This benefit will be provided to senior citizens who make a fixed deposit of less than Rs 5 crore for a term of 5 years one day to 10 years during a special deposit offer that will function from May 18, 2020 to June 30, 2021. For a deposit amount of Rs 2 Cr the below listed HDFC Bank FD Rates are in effect from 13 November 2020.
| Tenure | ROI for general public | ROI for senior citizens |
|---|---|---|
| 7 – 14 days | 2.50% | 3.00% |
| 15 – 29 days | 2.50% | 3.00% |
| 30 – 45 days | 3.00% | 3.50% |
| 46 – 60 days | 3.00% | 3.50% |
| 61 – 90 days | 3.00% | 3.50% |
| 91 days – 6 months | 3.50% | 4.00% |
| 6 months 1 days – 9 months | 4.40% | 4.90% |
| 9 months 1 day < 1 Year | 4.40% | 4.90% |
| 1 Year | 4.90% | 5.40% |
| 1 year 1 day – 2 years | 4.90% | 5.40% |
| 2 years 1 day – 3 years | 5.15% | 5.65% |
| 3 year 1 day- 5 years | 5.30% | 5.80% |
| 5 years 1 day – 10 years | 5.50% | 6.25% |
ICICI Bank Fixed Deposit
For opening a short-term fixed deposit account, ICICI Bank provides interest rates ranging from 2.50 percent to 4.40 percent per annum. Fixed deposit periods of less than 12 months are known as short-term fixed deposits. Fixed deposits with a period of 12 to 60 months are known as medium-term fixed deposits. ICICI Bank’s rate of return on such deposits ranges from 4.90 percent to 5.35 percent per annum. Long-term fixed deposits are classified as any FD account that is opened for a period of five years or more. For such deposits, the lender provides 5.50 percent p.a. Interest rate. For all fixed deposit tenures, ICICI Bank offers senior citizens an additional 0.50 percent p.a. interest rate. As a result, interest rates vary from 3.00 percent per year to 6.30 percent annually. ICICI Bank Golden Years is a special FD scheme for senior citizens provided by ICICI Bank. For these deposits, the bank offers an 80 basis point higher interest rate. The ICICI Bank Golden Years FD scheme provides a 6.30 percent annual interest rate to senior citizens which will end today, March 31, 2021. For a deposit amount of Rs 2 Cr the below listed ICICI Bank FD Rates are in effect from 21 October 2020.
| Tenure | ROI for general public | ROI for senior citizens |
|---|---|---|
| 7 days to 14 days | 2.50% | 3.00% |
| 15 days to 29 days | 2.50% | 3.00% |
| 30 days to 45 days | 3.00% | 3.50% |
| 46 days to 60 days | 3.00% | 3.50% |
| 61 days to 90 days | 3.00% | 3.50% |
| 91 days to 120 days | 3.50% | 4.00% |
| 121 days to 184 days | 3.50% | 4.00% |
| 185 days to 210 days | 4.40% | 4.90% |
| 211 days to 270 days | 4.40% | 4.90% |
| 271 days to 289 days | 4.40% | 4.90% |
| 290 days to less than 1 year | 4.40% | 4.90% |
| 1 year to 389 days | 4.90% | 5.40% |
| 390 days to < 18 months | 4.90% | 5.40% |
| 18 months days to 2 years | 5.00% | 5.50% |
| 2 years 1 day to 3 years | 5.15% | 5.65% |
| 3 years 1 day to 5 years | 5.35% | 5.85% |
| 5 years 1 day to 10 years | 5.50% | 6.30% |
| 5 Years (80C FD) | 5.35% | 5.85% |
Axis Bank Fixed Deposit
With impact from March 18, Axis Bank has updated its fixed deposit interest rates (FDs). Axis Bank provides FDs in terms ranging from seven days to ten years. Axis Bank is providing a 2.50 percent interest rate on FDs for a maturity period of 7 to 29 days. The bank provides 3% on FDs with a maturity period of 30 days to less than 3 months. 3.5 percent for FDs with a maturity period of 3 to 6 months. For FDs maturing in six months to less than 11 months 25 days, Axis Bank offers a 4.40 percent interest rate. 5.15 percent from 11 months and 25 days to less than one year and five days. For term deposits maturing in 18 months or less than two years, Axis Bank pays 5.25 percent interest rate. Long-term deposits maturing in 2 to 5 years provide a 5.40 percent interest rate while deposits maturing in 5 to 10 years will fetch an interest rate of 5.75%. On certain maturities, Axis Bank gives senior citizens a higher rate. For deposits maturing in 7 days to 10 years, senior citizens will receive interest rates ranging from 2.5 percent to 6.50 percent. For a deposit amount of Rs 2 Cr the below listed Axis Bank FD Rates are in effect from March 18, 2021.
| Tenure | ROI in % for general public | ROI in % for senior citizens |
|---|---|---|
| 7 days to 14 days | 2.5 | 2.5 |
| 15 days to 29 days | 2.5 | 2.5 |
| 30 days to 45 days | 3 | 3 |
| 46 days to 60 days | 3 | 3 |
| 61 days < 3 months | 3 | 3 |
| 3 months < 4 months | 3.5 | 3.5 |
| 4 months < 5 months | 3.5 | 3.5 |
| 5 months < 6 months | 3.5 | 3.5 |
| 6 months < 7 months | 4.4 | 4.65 |
| 7 months < 8 months | 4.4 | 4.65 |
| 8 months < 9 months | 4.4 | 4.65 |
| 9 months < 10 months | 4.4 | 4.65 |
| 10 months < 11 months | 4.4 | 4.65 |
| 11 months < 11 months 25 days | 4.4 | 4.65 |
| 11 months 25 days < 1 year | 5.15 | 5.4 |
| 1 year < 1 year 5 days | 5.15 | 5.8 |
| 1 year 5 days < 1 year 11 days | 5.1 | 5.75 |
| 1 year 11 days < 1 year 25 days | 5.1 | 5.75 |
| 1 year 25 days < 13 months | 5.1 | 5.75 |
| 13 months < 14 months | 5.1 | 5.75 |
| 14 months < 15 months | 5.1 | 5.75 |
| 15 months < 16 months | 5.1 | 5.75 |
| 16 months < 17 months | 5.1 | 5.75 |
| 17 months < 18 months | 5.1 | 5.75 |
| 18 Months < 2 years | 5.25 | 5.9 |
| 2 years < 30 months | 5.4 | 6.05 |
| 30 months < 3 years | 5.4 | 5.9 |
| 3 years < 5 years | 5.4 | 5.9 |
| 5 years to 10 years | 5.75 | 6.5 |
Kotak Mahindra Bank Fixed Deposit
The interest rate on fixed deposits has been updated by Kotak Mahindra Bank (FD). On FDs maturing in 7 to 30 days, 31 to 90 days, and 91 to 179 days, Kotak Mahindra Bank provides interest rates of 2.5 percent, 2.75 percent, and 3.25 percent, respectively. For term deposits maturing in 180 days or less than a year, Kotak Mahindra Bank offers 4.40 percent interest. For deposits maturing in one year to 389 days, the bank offers 4.50 percent. For FDs maturing in 390 days to less than 23 months, the bank will now bid 4.90 percent. For deposits maturing in 23 months to less than 3 years, Kotak Mahindra Bank will provide a 5% interest rate. For term deposits with a maturity period of three years or more but less than four years, the bank will provide 5.10 percent. For deposits maturing in 4 years or more but less than 5 years, Kotak Mahindra Bank offers a 5.25 percent interest rate. For FDs maturing in 5 years or more, up to and including 10 years, the bank offers 5.30 percent. Senior citizens will get interest rates that are 50 basis points higher than the general public. On FDs maturing in 7 days to 10 years, the bank provides interest rates ranging from 3% to 5.8% respectively. These rates are in force from March 25, 2021. For a deposit amount of Rs 2 Cr the below given Kotak Bank FD Rates are considered here.
| Tenure | ROI for general public | ROI for senior citizens |
|---|---|---|
| 7 – 14 Days | 2.50% | 3.00% |
| 15 – 30 Days | 2.50% | 3.00% |
| 31 – 45 Days | 2.75% | 3.25% |
| 46 – 90 Days | 2.75% | 3.25% |
| 91 – 120 Days | 3.25% | 3.75% |
| 121 – 179 days | 3.25% | 3.75% |
| 180 Days | 4.40% | 4.90% |
| 181 Days to 269 Days | 4.40% | 4.90% |
| 270 Days | 4.40% | 4.90% |
| 271 Days to 363 Days | 4.40% | 4.90% |
| 364 Days | 4.40% | 4.90% |
| 365 Days to 389 Days | 4.50% | 5.00% |
| 390 Days (12 months 25 days) | 4.90% | 5.40% |
| 391 Days – Less than 23 Months | 4.90% | 5.40% |
| 23 Months | 5.00% | 5.50% |
| 23 months 1 Day- less than 2 years | 5.00% | 5.50% |
| 2 years- less than 3 years | 5.00% | 5.50% |
| 3 years and above but less than 4 years | 5.10% | 5.60% |
| 4 years and above but less than 5 years | 5.25% | 5.75% |
| 5 years and above up to and inclusive of 10 years | 5.30% | 5.80% |
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Financial institutions should keep capital buffers to absorb losses: RBI Dy Governor
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M Rajeshwar Rao, Deputy Governor, Reserve Bank of India, has called upon financial institutions to have strong capital buffers to absorb potential losses and sustain the credit flows.
Financial institutions should be aware of the rising cyber risks; strive for good governance and practice ethical behaviour as these are the core for a strong financial services industry.
Rao was speaking at the virtual session of the 29th edition of the ‘Mind to Minds’, a motivational lecture series organised by Muthoot Pappachan Group for their employees.
Green finance
He stressed upon the need for strategies that allow capital, labour, skills, and innovation to shift to new purposes so as to build a greener, stronger and resilient post-Covid economic environment. The impact of climate change and the need for green finance and environmental friendly activities have to be factored while planning for growth, he said.
Rao suggested that the businesses should seize the current opportunity to lay the foundations for a durable, equitable, and sustainable global economy. He is also highly optimistic that the negative effect of the pandemic on the economy is showing a reversing trend. Various high frequency indicators also suggest a higher future growth. At the same time, he cautioned that the recent surge in Covid cases pose a downside risk to recovery.
Thomas John Muthoot, Chairman, Muthoot Pappachan Group and Managing Director, Muthoot Fincorp, pointed out that the various initiatives of the government and the RBI has helped banks and NBFCs with adequate liquidity. The higher purpose of Muthoot Pappachan Group and Muthoot FinCorp is to “transform the lives of the common man through their financial well-being”.
The Group would follow the highest degree of ethical standards and corporate governance to ensure fair treatment to its customers, who primarily belong to the low-income group, he said.
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New Wage Code Put On Hold: No Change In Take Home Pay, PF Outgo From April 1
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Personal Finance
oi-Roshni Agarwal
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New salary rules for India are not coming into force from tomorrow. A senior labour ministry official told a leading business daily that the new wage code that may overhaul the salary structure for most working staff has been put on hold for now.
So, along with the new wage code rules, 3 other codes including social security code, the code on industrial relations and the code on occupational safety, health and working conditions won’t be implemented from the new fiscal year beginning tomorrow.
The deferment will provide companies with more time to rework employee salary structure. Further as per expert in the domain Aon, most companies are still seeking clarity with respect to components to be included or excluded in the basic pay.
And as and when the centre notifies it, the new wage code shall bring about changes to the salary structure of most of India Inc. So, with it for the employees there shall be change in take home pay, gratuity, PF etc. And for India Inc, there shall be an impact on their balance sheet.
GoodReturns.in
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HDFC Bank Vs ICICI Bank…who is speeding up?, BFSI News, ET BFSI
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HDFC Bank suffered at least the fourth outage on Tuesday in the last three years as customers experienced downtime on their internet and mobile banking with services not accessible to them for several hours.
This led to an almost 4% drop in the bank’s shares in afternoon trade on Wednesday in a market, which saw across the board sell-off due to Covid worries. At the same time, the drop in ICICI Bank was just 2%.
While it has a lot of catching up to do, ICICI Bank is fast narrowing the gap with HDFC Bank and larger peers.
Why is ICICI Bank surging
Experts said the worst is behind ICICI Bank. It has gone through a period of tremendous amounts of credit cost related issues and write-offs taking place. Secondly, it is focusing more to be a retail bank which is contributing to growth. On top of it, ICICI was trading at a substantial discount in terms of its valuation to its larger peers. The discount is also narrowing down and has contributed to this outperformance.
ICICI Bank’s performance has now become comparable with HDFC Bank’s (industry best) and as comfort on asset quality/ credit-cost improves, this should translate into stable growth in net profits as well, experts said.
It has improved the velocity (pace and direction) of operating profit over the past two years reflecting improved topline and cost efficiencies. An improvement in velocity of ICICI Bank’s operating profit growth & steady credit cost will bring down volatility in earnings, which has been a key reason for a 55% discount in valuation versus HDFC Bank. Lower volatility can reduce Beta, which can bridge the valuation gap by half. The rest reflects the gap in growth & ROE – this can be partly bridged with improved growth in clients/ CASA. Brokerage Jefferies has raised its price target to Rs 780 and hold it among its top picks in the sector.
ICICI Bank versus HDFC Bank
ICICI Bank trades at 55% discount to HDFC Bank in terms of valuations – ICICI Bank at 1.9x FY22 adjusted PB and HDFC Bank at 3.4x. This reflects a combination of HDFC Bank’s better growth, ROE and lower Beta. With a lower volatility in earnings, HDFC Bank’s Beta is at 1 whereas ICICI’s is around 1.2-1.3. Brokerage Jefferies said that consistency in earnings growth/ asset quality will help ICICI Bank bring down Beta closer to 1. This can lift-up the theoretical PB from 1.9x now to 2.5x – closing the gap with HDFC Bank by 30%.
CASA deposits
ICICI Bank has seen steady growth in CASA deposits. During Q3, ICICI Banks saw average CASA growth of 19% YoY whereas HDFC Bank saw 30% YoY growth.
Jefferies sees an improvement in earnings and profitability from FY22 as credit costs stabilise alongside steady growth in topline. It has raised its price target on the bank to Rs 780 (from Rs 700) and target multiple to 2.4x Mar-23E adjusted PB.
At a valuation of Rs 1.7-1.8 lakh crore, ICICI Bank has a big branch network and stability and clean up that has been brought about in the business in the last three years under the new leadership, while HDFC has a market cap of close to about Rs 8 lakh crore.
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SBI raises USD 1 billion untied loan with JBIC, BFSI News, ET BFSI
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State Bank of India, Country’s largest commercial bank, has signed a loan agreement amounting to up to USD 1 billion with Japan Bank for International Cooperation(JBIC).
SBI has signed a similar deal with JBIC in October 2020. The financing will assist in Government of India’s ‘Make in India’ initiative
The loan is intended to promote smooth flow of funds for the whole range of business operations of Japanese automobile manufacturers in India.
Dinesh Khara, Chairman, SBI said “Covid 19 crisis has delivered a significant shock to global trade, disrupted production lines and depressed global demand. At a time when people are preferring personal mode of transport, this collaboration between SBI and JBIC will help the bank in extending loan facility to the entire supply chain of Japanese automobile industry including suppliers, dealers and ultimately to the end users.”
Ayukawa, MD & CEO, Maruti Suzuki said, “Maruti Suzuki is making efforts to balance between the environmental friendliness of our vehicles and our customer’s need. The special support for our environment friendly vehicles will accelerate Suzuki group’s initiative towards environmental care”.
JBIC is a policy-based financial institution, wholly owned by the Japanese government, with the objective of contributing to the sound development of Japan, the international economy and society.
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Make new arrangements for recurring credit, debit card transactions as new norms kick in from April 1
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Starting April 1, customers will have to make alternative arrangements for recurring transactions for utilities and bill payments such as registering the biller on internet or mobile banking.
This is because most banks and payment companies have been unable to meet RBI norms to process e-mandate on cards for recurring transactions.
However, UPI and Rupay AutoPay facilities are unlikely to be disrupted. Sources said that most banks are live on it but it is unclear as to how many merchants are live on it.
Most large banks and payment players have already been informing customers that they would have to make alternative arrangements for auto debit through debit and credit cards.
Apart from payments for utilities like phone and electricity bills, even recurring payments to service providers such as Amazon Prime and Netflix will have to be made directly.
According to bankers, while they have made arrangements to comply with RBI norms, many merchants are yet to adhere to them.
“We are currently building a solution in adherence to the regulatory requirements. Therefore, effective April 1, 2021 any standing instruction for recurring transactions on your Card account will not be approved by American Express,” American Express said in a communication to customers, adding that to avoid any disruption in delivery of goods and services, starting April 1, 2021 customers should make payments directly to the service providers for bills as and when they become due.
Visa declined to comment on the issue when approached by BusinessLine.
“..as per regulatory guidelines, recurring merchant transactions based on Standing Instructions on your ICICI Bank Cards will be disabled effective April 1, 2021. To continue making payments against your regular utility bills, kindly register your biller through iMobile Pay or Internet Banking. For other standing instruction transactions, you may re-register or initiate transactions at regular intervals,” ICICI Bank said in a similar message to customers.
Recently, the Internet And Mobile Association of India (IAMAI) had also warned that millions of e-mandates set up by customers could fail from April 1, 2021.
The RBI had issued two circulars (August 2019 and December 2021) to banks, ‘non-bank prepaid payment instrument issuers’, and ‘authorised card payment networks’ for processing of e-mandates. The deadline to comply with it is March 31, 2021.
Under the new norms, banks will be required to inform customers in advance about recurring payment due and it would be carried following nod from the customer. For recurring payments above ₹5,000, banks are required to send a one-time password to the customer as per the new guidelines.
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Reserve Bank of India – Tenders
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CAB, RBI, Pune invites applications for Empanelment of contractors for deep sanitisation/disinfection of CAB and residential colonies of CAB on as and when required basis. Interested agencies may apply by downloading the Tender Form from the “Tender” section of our website (www.rbi.org.in). The tender forms can also be obtained from the College of Agricultural Banking (CAB), Reserve Bank of India, Protocol, Security and Logistics Division (PSLD), University Road, Pune from March 31, 2021 to April 20, 2021, from Monday to Friday, between 09.30 AM to 05.45 PM. Schedule of the tender is given below:
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From LPG Price To Salary: 10 Changes That Will Be In Force From April 1
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LPG Price
The price of LPG cylinder is announced by the central government on the first of every month. Although international oil prices are expected to increase in the coming month, the price of LPG cooking gas may spike further on April 1, 2021.
New Wage Code
The new wage code regulations are scheduled to be announced in accordance with the Code on Wages 2019 on April 1, the first day of the fiscal year 2021-22. The Wage Code Bill was approved by the government in Parliament in 2019. An adjustment in salary structure and working hours for a significant number of employees is projected as a result of this. Employers will be required to pay at least 50% of an employee’s CTC as basic pay under the new wage code, which will maximize contributions to other aspects such as provident fund and gratuity. Basic pay, house rent allowance (HRA), retirement benefits (PF, gratuity, and more), and tax allowances like LTC and so on all relate to an employee’s CTC. As a result, most employees’ take-home pay will be reduced, but retirement benefits are likely to be higher due to increased monthly contributions to the provident fund and gratuity.
Hike in NPS Fund Managers Charges
The Pension Fund Regulatory and Development Authority (PFRDA) has mandated pension fund managers (PFMs) to charge more for the next fiscal year 2021-22, which starts on April 1, 2021, in order to draw more foreign investment The pension regulator has permitted fund managers to charge higher than the current 0.01 percent because the PFRDA has abolished the 0.01 percent ceiling on AUM (Asset Under Management) charges, according to PFRDA. The overall limit has been set at 0.09 percent for AUM up to Rs 10,000 crore, according to the PFRDA. Charges of up to 0.06 percent will be allowed for PFMs with AUM of Rs 10,001 crore to Rs 50,000 crore. Charges of up to 0.05 percent will be required for those with AUM of Rs 50,001 crore to Rs 150,000 crore. Finally, PFMs with assets under management of more than Rs 150,000 crore will be permitted to charge a maximum fee of 0.03 percent.
Passbook and cheque book will be become non-functional
Your passbook and cheque book will become non-functional on April 1, 2021, if you have a bank account with any of these seven public sector banks: Dena Bank, Vijaya Bank, Corporation Bank, Andhra Bank, Oriental Bank of Commerce, United Bank of India, and Allahabad Bank. This will come as a part of the merging of these banks with other banks. As Dena Bank and Vijaya Bank is merged with Bank of Baroda, Oriental Bank of Commerce and United Bank of India with Punjab National Bank (PNB), Corporation Bank and Andhra Bank with Union Bank of India and Allahabad Bank merger with Indian Bank. Account holders of the other merged banks will be allowed to use their current cheque books and passbooks until March 31 (today). If a customer has an account with any of these seven banks, look for a new cheque book and IFSC code instantly. That being said, Syndicate Bank and Canara Bank’s current cheque books and passbooks will be valid until June 30, 2021.
New tax rule on EPF
The government declared a limitation on tax deduction on PF contributions in Budget 2021. An annual contribution limit of Rs 2.5 lakh has been introduced. Strictly speaking, if an employee’s statutory or voluntary contribution to the provident fund exceeds Rs 2.5 lakh a year, the interest received on that excess contribution is subject to taxation. The new law will take effect on April 1, 2021. The change is expected to affect individuals with high income and, as a result, high EPF contributions. And apart from high-income individuals, salaried employees who contribute more than the required 12 percent of basic pay in the Voluntary Provident Fund (VPF) will be affected.
Tax deducted at source (TDS)
In budget 2021, the finance minister proposed higher TDS (tax deducted at source) or TCS (tax collected at source) thresholds in order to enable more taxpayers to file income tax returns (ITR). The budget proposes adding new Sections 206AB and 206CCA to the Income Tax Act as a special allowance for the deduction of higher TDS and TCS thresholds for non-filers of an income tax return, respectively. Individuals who have not paid income tax returns yet have a TDS or TCS allowance of more than Rs 50,000 in the previous two years will be required to pay TDS or TCS at a rate of at least 5%.
LTC cash voucher scheme
In Budget 2021, the central government announced a tax deduction for cash allowance in favor of the Leave Travel Concession (LTC). Last year, the government proposed a scheme for people who were unable to receive their LTC tax advantage due to covid-related travel bans. This initiative is only valid until March 31, 2021, which means money must be spent by the stated date to avail the benefit.
Pre-filled ITR forms
Individual taxpayers will be issued pre-filled Income Tax Returns (ITR). Details of salary income, tax payments, TDS, and other records are now pre-filled with income tax returns to make compliance easier for the taxpayer. Specifics of capital gains from listed securities, dividend income, and interest from banks, post office, and other sources will be pre-filled to make filing returns much easier. The step is intended to make filing returns easier.
Senior citizens above the age of 75 are no longer required to file ITR
Individuals above the age of 75 are restricted from filing income tax returns, according to Finance Minister Nirmala Sitharaman, who announced the restriction while introducing Budget 2021. (ITR). Only senior citizens who have no other source of income and depend solely on their pension and interest from the bank that holds their pension account will be eligible for the provision.
New tax regime
On April 1, 2020, the new fiscal year will begin amid a nationwide lockdown. Despite the fact that the government has extended numerous tax-related deadlines, such as the filing of income tax returns for FY 2018-19, tax-saving for FY 2019-20, and linking of PAN with Aadhaar, some new tax-related rules will take effect on April 1. Last year, in Budget 2020, the government adopted the new tax regime. That being said, beginning on April 1, 2021, the practice of choosing one of the tax regimes for FY 2020-21 will be necessary. Taxpayers have a deadline until March 31, 2021 (today) to make tax-saving deductions, but they will be required to choose a tax regime while filing their tax returns for the fiscal year 2020-21. At the beginning of FY 2020-21, an individual can select the new tax regime and notify their employer. During the fiscal year, the employee is not allowed to change their preference. The adjustment, however, can be introduced when filing IT returns in July 2021. The deadline to pay tax for FY 2020-21 (AY 2021-22) is July 31, 2021. If an individual does not adopt the new tax regime at the outset of the fiscal year, the employer will subtract tax (TDS) in compliance with the current tax regime.
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