New Delhi, 31/03: There will be a big change in the country from April 1. The six-decade-old Income Tax Act of 2025 will be implemented in the country, saying goodbye. Similarly, after the announcements made in GST 2.0 are implemented, there will be a big economic change in the country. This will have a direct impact on a common citizen. From salary to cooking gas and daily expenses, the calculation will be changed. Income up to 12 lakhs will be tax-free from 2026-27. On the other hand, LPG, medicines, and cars will become expensive due to the Middle East war. So, know which rules will change?
Complete these tasks by tonight.
Tax savings and investment: Start investing in PPF, ELSS, and life insurance before March 31 to get tax-free under sections 80C and 80D. This benefit will not be available in the new financial year.
Keep accounts active: It is very important to maintain the minimum required balance in PPF, NPS, and Sukanya Samriddhi Yojana accounts to avoid inactivity and penalties.
Updated returns: The last date to file updated returns for the financial year 2020-21 (assessment year 2021-22) is March 31.
For those with foreign income, NRIs will have to file Form 67 by this date to claim a foreign tax credit. Otherwise, they will have to face double taxation.
What are the changes in all the rules from April 1?
New tax regime: Annual income up to Rs 12 lakh will not be taxed. In addition, the standard deduction of Rs 75,000 will continue for salaried people.
Big relief in the old system: Monthly allowance for children’s education will be increased from Rs 100 to Rs 3,000 and hostel allowance from Rs 300 to Rs 9,000.
International travel is cheaper: the TCS rate on overseas tour packages has been reduced from 5% and 20% to 2%.
Is it cheap or expensive?
Cheap: Health and life insurance, 33 life-saving medicines, unpackaged dairy products, small cars, AC, and TV.
Expensive: Tobacco, luxury vehicles, large SUVs, online gaming.
Expensive hit on consumers
LPG cylinder: Due to the Middle East war, the price of a domestic gas cylinder in Delhi has increased to Rs 913. Similarly, commercial cylinders have become expensive by Rs 1,883.
Medicines: Due to price hikes by pharmaceutical companies, NPPA has approved a price hike of up to 1.74% for over 900 essential medicines (such as paracetamol and antibiotics).
Car price hike: Companies like Tata Motors, Honda, and Mercedes have increased the prices of their vehicles from April 1.
Changes in train travel rules
The annual FASTag pass for highway travel has been increased from Rs 3,000 to Rs 3,075. Similarly, as per the new rules of Indian Railways, if a confirmed ticket is cancelled within eight hours of the train’s departure, there will be no refund (previously it was four hours).
