Income tax

6 key changes from December

Main changes in December 2021: As the year draws to a close, with December already beginning, Indians are expected to face a host of changes early in the month in terms of money matters. These regulatory and operational changes are likely to change for most people. As we move towards the end of the year, citizens will have to follow new rules and adapt to changes implemented by various government and non-government agencies. In this context, you should be aware of the new directives which came into effect from December.

For example, the last date to file your tax return is December 31. Increases in term insurance are also expected to be implemented this year. For SBI credit card holders, EMI transactions are likely to become more expensive starting December 1. The rule will also be implemented for online transactions. On the other hand, the Punjab National Bank cut interest rates from December. Details of all these changes, which have already entered into force, are given below.

Filing deadline for the income tax return

December 31 is the last date to file the income tax return (RTI) for the 2021-2022 tax year (2020-2021 fiscal year). If you fail to do so within the allotted time, you could be subject to penalties and have to pay a fine when you file it. Therefore, it is advisable to start filing your tax return early and not wait until the end of the month.

Deadline for submission of the life certificate

The Department of Pensions and Retiree Welfare (DoPPW), in a memorandum dated December 1, extended the deadline for submitting a life certificate. After the move, retirees must submit their Jeevan Pramaan by December 31 to continue receiving their pension without interruption. The decision was made in light of the Covid-19 pandemic.

SBI EMI will get expensive from this month

For SBI credit card holders, EMI transactions will become more expensive as the bank said it will levy a processing fee of Rs 99 and impose taxes. “Dear Cardholder, We would like to inform you that as of December 1, 2021 a processing fee of Rs. 99+ Applicable Taxes will be levied on all Merchant EMI transactions made at point of sale / website / merchant application. We thank you for your continued patronage. Please click here to learn more about the merchant’s EMI processing fee, ”read a letter from SBICPSL last month. The rule will apply to all EMI transactions made from December 1 at merchant points of sale or e-commerce platforms.

Term life insurance plans will get more expensive

Premiums for pure protective term insurance are expected to increase again in December. According to reports, the increase will be between 25 and 45% amid rising reinsurance rates in the global market. Since India has enjoyed low term insurance rates over the past four years, the absolute rate hike can come as a shock to consumers. The reason is the death rate linked to the pandemic.

The interest rate on the PNB savings account will fall

The Punjab National Bank, or PNB, has announced that it will reduce the interest rate on savings accounts for balances below Rs 10 lakh to 2.80% per annum from December. For balances above Rs 10 lakh, the interest rate has been reduced to 2.85% per annum.

Read all the latest news, breaking news and news on the coronavirus here.


Source link