Many rules will be changed from 1st April, changes in salary structure due to new labour law, PF set to increase
Many such rules and regulations will be changed from the new financial year i.e. April 1, 2021, which will have an impact in some form or the other from the common man, employees and businessmen to pensioners. Despite the current rates and slabs of income tax being unchanged, with the new labour law coming into force from next month, there will be a change in the salary structure. This will contribute more to the employees’ provident fund (PF) than before. Under the new labour law, the basic salary will have to be increased to at least 50 percent of the total salary. This will benefit the employees with less than a 50 per cent stake. An increase in basic salary will increase the contribution of PF. In this way, their savings will increase.
Gratuity period will be reduced: Under the new labour law, the time limit for gratuity is also being reduced. Currently, gratuity is paid by working for five consecutive years in a company.
Tax on excess PF contribution: In the new fiscal year 2021-22, tax provision has been implemented under income tax on PF contribution of more than Rs 2.5 lakh. Income taxpayers who earn more than two lakh rupees per month will normally come under this radius.
Exemption for the elderly from filling ITR: Elderly pensioners who have crossed 75 years of age are exempted from filing Income Tax Return (ITR). This facility will be available only to those whose income source is pension and interest on it.
LTC Encashment period will end: The period of exemption for employees under the Leave Travel Concession (LTC) voucher is till 31st March 2021. That is, from next month the advantage of this cannot be taken.
E-invoice will be compulsory: E-invoice will be mandatory for all such businessmen whose turnover is more than Rs 50 crore under the Business to Business (B2B) business from April 1st.