According to the RBI, private and public sector banks throughout the country will be closed for 15 days in April 2021, including the second, fourth Saturdays and Sundays. Ram Navami, Good Friday, Bihu, the birth anniversary of freedom fighter and Congress leader Jagjivan Ram, and the Telugu new year will be observed in April. Bank holidays, on the other hand, are not celebrated in all states, and they differ depending on the state or region. Banks all over the country follow only gazetted holidays. Due to the closing of accounts, all banks will be closed on April 1. Banks in Guwahati will be closed for three days in a row, beginning April 14 and ending April 16. Bank customers who plan to do any banking related task in April should plan their visits in accordance with the bank holiday list to prevent being inconvenienced. Although banks will be closed on these days, mobile and online banking will be open as usual, allowing consumers to perform transactions over the internet. Here’s the full list of bank holidays in April 2021.
Date
Day
Holiday
Holiday in
1 April 2021
Thursday
Odisha day/Yearly account closing day
Odisha/several states
2 April 2021
Friday
Good Friday
Several states
5 April 2021
Monday
Babu Jagjivan Ram’s birthday
Andhra Pradesh and Telangana
6 April 2021
Monday
Mahavir Jayanti
Several states
13 April 2021
Tuesday
Ugadi/ Telugu New Year/ Bohag Bihu/ Gudi Padwa/ Vaisakh
Several states
14 April 2021
Wednesday
Dr. Ambedkar Jayanti/ Emperor Ashoka’s birth anniversary/ Tamil New Year/ Maha Vishuba Sankranti/ Bohag Bihu/ Cheiraoba
Several states
15 April 2021
Thursday
Himachal Day/Bengali New Year’s Day/Vishu/Sarhul
Himachal Pradesh, Kerala, West Bengal, Jharkhand
21 April 2021
Wednesday
Ram Navami/ Garia Puja
Several states Tripura
25 April 2021
Sunday
Mahavir Jayanti
Several states
Sunday and Saturday holidays:
April 4 – Sunday
April 10 – Second Saturday
April 11 – Sunday
April 18 – Sunday
April 24 – Fourth Saturday
April 25 – Sunday
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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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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.
New Wage Code Put On Hold: No Change In Take Home Pay, PF Outgo From April 1
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.
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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.
From April 1, 2021, the Financial Year 2021-22 will begin. There are some big changes coming up next month that will have a significant impact on the financial circumstance. A spike in NPS fund manager’s charges, banking regulations due to merge of some banks, adjustments in LPG cylinder rates, a new salary system, and so on are only a few of the significant changes that will be in effect from tomorrow. Here are the most important adjustments that will have a significant influence on your financial status.
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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The Indian Gold Coin Scheme is the Government of India’s first ever gold offering. The scheme is among the three gold schemes launched by the Prime Minister in the year 2015 and is currently being run by MMTC. Recently, the centre has approved several changes in the Indian Gold Coin Scheme.
Now You Can Soon Buy 1, 2gms Gold Coins Under New Indian Gold Coin Scheme
So with the changed rules, there is expected that the scheme shall gain popularity and the gold coins will be easily available to buyers through the various marketing channels such as e-commerce portals, jewellers, banks, post office and via MMTC.
Changes in Indian Gold Coin Scheme
1. The centre has allowed the Security Printing and Minting Corporation of India (SPMCIL) to mint Indian Gold Coin (IGC) in smaller denomination of 1 gm and 2 gm. Earlier they were minted in denominations of 5, 10 and 20 gms only.
2. Indian Gold Coin is the first ever national Gold Coin and is loaded with sophisticated security features. Also, it is the only BIS hallmarked gold coin in the country.
Other amendments to the IGC scheme that you should know:
1. SPMCIL will also engage in the minting and selling of Indian Gold coin via e-commerce platforms and other channels including airports.
2. SPMCIL will also service export orders for IGCs via its e-commerce gateway at prices agreed as per the Board approved policy.
3. They will be available for sale at duty free counters at all International Airports in India through partners.
4. IGC will also be available in 995 fineness. At present it is manufactured in 24K of 999 fineness only. So, with the new rules in place, IGCs shall be available in 24K of both 999 and 995 purity or fineness.
5. SPMCIL Mumbai has been given the flexibility to mint commemorative gold coins, order gold coins for temples, trusts etc, as well as launch variants of IGCs on special occasions.
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According to an RBI circular first released in December 2020, banks are likely to refuse auto payments from April 1 since all recurring transactions using cards and prepaid payment services will now allow an additional layer of authentication. A one-time password will be used for transactions above Rs 5,000. Customers will be alerted five days before an automatic payment is set, and the process will only proceed if the customer approves it. If banks fail to allow automatic payments, customers will have to execute their bill payments manually. Bills and subscription facilities such as OTT platforms, media, utility, and postpaid services are paid using recurring mandates on debit/credit cards. Payment rejection is supposed to trigger a massive crisis, with forecasts estimating that about Rs 2,000 crore transactions could fail as of April 1. UPI transactions, on the other hand, will be exempted by the new law. Due to contractual agreements, third-party payment providers have also refused to share customer details with banks, exacerbating the crisis. Although the central bank has rejected to extend the timeline, the crisis is likely to be settled in the upcoming days. Here are the few key things to note about the new law and how it can influence you.
In August 2019, the Reserve Bank of India (RBI) released a circular to all scheduled commercial banks, card payment systems, prepaid instrument providers, and the National Payments Corporation of India (NPCI) about the forthcoming regulation for an additional factor of verification on recurring transactions.
All recurring transactions will require additional authentication from the customer from April 1 respectively.
Not only will the regulation influence banks and financial institutions that provide credit cards, debit cards, and other prepaid payment services, but also mobile payment wallets and platforms that support UPI-based payments.
The law was proposed to relate to recurring transactions of up to Rs. 2,000 at first. The RBI, on the other hand, declared in December that, in response to stakeholder demands, it had agreed to raise the cap on recurring transactions not having an additional factor of authentication (AFA) to Rs. 5,000. A one-time password (OTP) will be required for all transactions above Rs. 5,000.
The banks also set a March 31 deadline for enforcement, according to an RBI circular released on December 4 that said, “Processing of recurring transactions (domestic or cross-border) using cards / PPIs / UPI under arrangements / practices not compliant with the aforesaid instructions shall not be continued beyond March 31, 2021.”
The new law will mandate banks and payment platforms that provide recurring transactions to give consumers a pre-transaction update at least 24 hours before the first transaction is set to be debited until it is enforced. The user can pick the mode of confirmation (SMS, email, etc.) while activating the e-mandate.
Customers’ permission will be required for the confirmation, after which the issuer will be free to continue with the payment. An additional factor of authentication (AFA) may be not required for potential recurring transactions.
All automatic payments are likely to be declined by banks, forcing customers to make bill payments manually. Banks have already begun alerting customers that they will not be able to accept recurring payments, suggesting that customers will have to make transfers manually before the issue is resolved and authentication is issued.
The new law is likely to affect firms that often use auto-payments for recurring charges, in particular to end users.
The central bank has rejected extending the time limit, but it is estimated that the case will be settled in the upcoming days. Banks and payment systems are yet to say if they are prepared to work under the new rule. Additionally, automatic payments across banks and wallets are likely to have some issues initially.
Due to a new Reserve Bank of India (RBI) law, auto and recurring payments of your mobile phone, utility bills, and subscription charges for over-the-top (OTT) platforms are likely to be disrupted from April 1.
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A post office RD is one of the most familiar investment alternatives available at post offices. As compared to bank fixed deposits, post office recurring deposits have been the most prominent because of the interest rate which is now at 5.8% (compounded on a quarterly basis) and tax benefits. If we compare this interest rate for the quarter ending in March 2021 with SBI FD, the leading public sector bank of India is now currently providing a low interest rate of only 5.4%. Post Office RD comes with a fixed tenure of 5 years and hence the interest earned is completely taxable. If you wish to keep your RD account after 5 years, there is a clause that allows you to extend it for another 5 years, bringing the total period to ten years. Furthermore, RDs that have been extended for another 5 years will continue to receive a quarterly compounded interest rate. With a minimum deposit of Rs 100 per month or any amount in multiples of Rs 10, one can open a post office RD account. After three years from the date of account opening, an RD account can be closed early by submitting the required application form to the respective Post Office. If the account is closed early, or one day before maturity, the interest rate on the Post Office Savings Account will apply. That being said, if you want to open a post office RD account, know the current penalty charges applicable on missing monthly installments.
Post Office RD Penalty Charges
The minimum monthly deposit is Rs100, and deposits in multiples of Rs10 subsequently. You can deposit the money before the 15th of the month if the account was opened within the first 15 days of the month. If the account was opened after that, the money had to be deposited by the month’s end.
The account is considered defaulted and deactivated if the deposits are not made within the specified time period. To reactivate the account, the depositor must pay a penalty of Rs1 for every Rs100 deposited, in addition to the required amount.
After four regular defaults, the account can be reactivated for up to two months. If the account is not reopened within this timeframe, it will be terminated and no more deposits will be allowed.
If there are no more than four defaults in monthly deposits, the account holder can then choose to extend the account’s maturity period by the same number of months as the number of defaults and deposit the missed installments during the extended period of months or years.
Note
Section 80C of the Income Tax Act allows post office RD account holders to claim tax benefits. Individuals can claim a tax deduction of up to Rs. 1.5 lakh per year under this section. The interest earned by the post office RD scheme, on the other hand, is taxable. Individuals should pay tax according to their income tax bracket. In addition, any interest that crosses Rs. 10,000 is subject to TDS deduction. TDS will be charged at 10% for account holders with PAN Card and 20% for those who do not have the same.
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Before switching organisations, NPS subscribers must change their Point of Presence (PoP) by submitting an application to the Central Record Keeping Agency (CRA) System in the specified format. That being said, despite leaving their employer, some individuals have yet to update their National Pension System (NPS) account to the PoP of their preference. And to prevent this, the PFRDA has advised employers to make Inter Sector Shifting (ISS) a part of the exit process by allowing employees to transfer their NPS account to a preferred Point of Presence. On a recent circular the Pension Fund Regulatory and Development Authority has stated that “It has been observed that there are instances wherein the NPS Subscribers under Corporate Sector have not exercised Inter Sector Shifting (ISS) before leaving their employers due to various reasons viz Resignation, Retirement etc and those employees are still tagged with their erstwhile employers in Central Record Keeping Agency (CRA) system even though they no longer work with those employers.”
As per the guideline, employers should provide a record of those employees, as well as their Permanent Retirement Account Numbers (PRANs), to the CRA/ POP for labelling, with the intention of de-tagging those PRANs from the employer, as per the rules listed below:
Employees of corporate sectors
Following the flagging of such employees’ PRANs in the CRA system, the Subscriber must choose a POP within three months, otherwise the PRANs will be labeled to the respective POP of the Corporate employer under the voluntary system. This category includes companies that serve as POPs while still offering NPS to their own employees (most specifically banks).
Employees of direct corporate sectors
Following the CRA system’s flagging of those employees’ PRANs, the subscriber must practise his or her preference of PoPs within three months, or the PRANs will be labeled to eNPS under the voluntary system. The subscriber has the option of continuing with eNPS or switching to another POP.
Employees under Corporate CG pattern of investment
Employees whose PRANs are in the Corporate CG pattern of investment but have been flagged in the CRA system must practise their option of investment and POP as applicable to their present role.
Intermediary charges
If intermediary charges were charged by the respective employer before the PRANs were flagged in the CRA system, the subscriber is liable for it. According to the PFRDA circular, CRAs are urged to establish adequate technology features in order to conform with the guidelines, and subscribers are to be continuously communicated with by CRAs in order to exercise their individual preference listed under multiple situations.
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NPS is a retirement scheme for which subscriber at the time of enrolling into the scheme need to specify whether he or she wishes to allocate funds across available asset classes or wants to go by the auto choice option. Note in the auto choice option in NPS or National Pension Scheme funds get allocated depending upon the subscribers’ age. Also, the NPS subscriber needs to select the fund manager at the time of account opening.
How To Make Changes To NPS Investment Choice And Fund Manager?
And during the term of the NPS scheme, investors can change the fund manager together with the investment choice via the online route as well as through PoP or Point of Presence.
Here’s the process to change
For initiating any of the changes, NPS subscriber must first log in to his or her account using the link https://cra-nsdl. com/CRA/. For logging in into the account, user ID is NPS holder’s PRAN number.
For changing scheme preference:
In the online route, after you have logged into your NPS account, you need to follow the below steps:
1. Log in superannuation
2. Under the main link for Transaction, you need to click on ‘ Scheme preference change’
3. Select Tier type and opt for scheme preference change as desired by you i.e. choose the desired scheme i.e. Active choice or Auto choice and within the Auto choice select Conservative or moderate or aggressive auto choice.
In a case if the active choice is being made, across asset classes, the asset allocation percentage is also to be pre-specified.
Changing investment choice under NPS through offline route:
And if you are not internet savvy or wish to complete the process physically, you can also submit request form GOS-S3 to your nodal office. This form is easily available on the CRA website and can be downloaded. After the request has been received physically, the Nodal office will update the Scheme Preference in the CRA.
Changing portfolio manager in NPS
Pension fund management company can also be changed once in a financial year. For effecting it online, after you have logged into your NPS account, you need to click on ‘Transact online’ tab and select the “Change PFM” option. After you have selected the pension fund manager, submit your request.
One can go for change in the pension fund manager by comparing and analyzing returns of NPS fund managers across same time horizon and for a particular asset category.
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