The new Financial Year 2021-22 started with the beginning of April 2021. The beginning of the new financial year marked the end of old financial provisions/rules and the implementation of new financial provisions/rules.
Along with the implementation of new financial regulations in the new financial year, there comes a change in the financial planning of the individual to cope up with the new financial regulation or best say, to grab the benefits of the new financial regulations.
In the new financial year 2021-22, there are many financial and tax provisions, that were announced by Finance Minister Smt. Nirmala Sitharaman and all these will be implemented effectively from 1st April 2021.
However, this year there is some twist. All the financial regulations that will be implemented are not the new ones, rather the end of the financial year 2020-21, also marks the end of a few sops or relaxations that were given to us in light of the ongoing Covid-19 pandemic. For instance, if your driver’s license or its registration certificate or fitness certificate had got expired last year on or after February 1, 2020, the government had given four extensions so far to get them renewed. The fourth and last such extension will expire on March 31, 2020.
Well, here is a list few financial regulations that will be implemented in the new financial year 2021-22. Let us have a look at these.
Financial Provision Related To Banks And Loans!!
Cheque Books And Passbooks Of Merged Banks Will Be Invalid From April 1!!
In the financial year 2020-21, nearly eight banks merged with bigger banks. However, the merger is now complete and the user with start their banking experience with newly formed banks. Well, in the interest of customers, and to ease their banking-related works, the government decided, from April 1, 2021, their old banks’ checkbooks and passbooks will become invalid. So here the customers need to make sure that their new bank has provided them with the new checkbooks, passbooks, and their new account details.
Changes In Indian Post payment Bank!!
Indian Post Payment Bank announced that they are going to introduce charges on cash deposits and cash withdrawals. Also, they are going to allow the facility of the Aadhar-enabled payment system for transactions from April 1, 2021.
Old Home Loan Rates Are Back!!
In amid of COVID-19, banks lowered the interest rates levied on home loans in the year 2020, however in the new financial year 2021-22, the old home loan interest rate is back again, and it's time to say bye-bye to the lower home loan interest rates.
Financial Provision Related To Pension Programme!!
Taxes Levied On EPF/VPF!!
In the union budget 2021-22, FM Smt. Nirmala Sitharaman announced that interest earned on the investment of over 2.5 lakhs per annum in EPF (Employee Provident Fund)/VPF (Voluntary Provident Fund) will be taxable at suitable rates, also if the employer does not contribute, in that case, investment up to Rs 5 lacs will be exempted from tax.
Financial Provision Related To Mutual Funds!!
Dividend Plans To Be Renamed!
Dividend plan in mutual funds will be renamed in the new financial year and will be now popular as ‘income distribution cum capital withdrawal plan’.
Voting Mandatory For Mutual Fund Managers!
SEBI made it mandatory for Mutual Fund Managers, to vote on company resolutions. From the new financial year 2021-22, they cannot abstain anymore. It has stated that the fund houses can only stay away from voting only in case if they don’t have any equity investment in the company on the day of voting.
Keep reading for more updates on Mutual Fund Investment!!
For any kind of query you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.
(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).