New Wage Code Bill 2021
What's there in New Wage Code Bill, 2021
Revised Salary Structure: -
According to the New Wage code, if implemented, the share of basic salary in your CTC( Cost-to-company) should be 50 percent or more. If the basic salary is less than 50 percent in your Salary details, then it is going to change soon. Your CTC may also increases with your basic salary when the rules will be implemented. Allowance to employees, like leave travel, house rent, overtime and conveyance Lowrance, will have to be crapped to the remaining 50 percent of CTC.
Increase in PF Contribution: -
The Centre had declared relaxation in the Leave Travel Concession (LTC) scheme due to the COVID-19 outbreak in 2020. The relaxation allowed the central government employees to claim income tax benefits on expenses made between October 12,2020 to March 31 2021, on purchase of item that attract GST rate of 12 percent or more instead of travel expenses.
EPFO Contribution:-
From April 1 2021, interest on employee contributions to provident fund above 2.5 Lakh per annum will be tax able. This announcement was made by Union Finance Minister Nirmala Sitharaman in her budget speech.
Income Tax rules for senior citizens:-
Person whose age is above 75 years and who has pension income and interest from fixed deposit comes in the same bank and who has only interest income, they need not to file income tax returns. Bank will deduct the income tax which he/she has to pay and deposit to the Government.
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