Beginning of new financial year: New taxes rule came into force

Introduction

New financial year is going to be established and their made a tax for an individual. It is an duty of an individual to pay a tax and support the government financial. If the tax was payed, citizen can be comfortable with the Government. Many of the business man are not active in paying his tax properly to the government, which leads to increase in the products. LW class people are suffered because of this. So, the new tax rules is established to overcome the financial crises because of Covid-19.

New rule passed

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The act is if the individual is having the annual income between one to five lakhs, their is no taxes. If it increases, the tax is made accordingly. Dividends received from mutual funds and also from domestic companies from April 1 will be taxable at the recipient’s hands. Dividends which the recipients will earn from their mutual fund investments will now be taxed at the recipient’s slab rates. Till the last financial year, the dividends received from mutual funds were tax-free but what the mutual funds used to do was charge a dividend distribution tax at a rate of 11.2 percent.  If any employer’s contribution exceeds Rs 7.5 lakh in an FY towards the NPS, superannuation fund or EPF, the amount will be taxable in the hands of the employee. This particular change would be applicable to both old and new income tax regimes. The people can buy their houses by taking loans and their can be pay money. That money can be less than ₹35 lakhs, if it increases the Individual should pay the tax accordingly to the government. This rules is only to face the financial crises due to the lockdown by Covid-19. Addition to this would be an already existing deduction norm of Rs 2 lakh.

The new tax rules which will be applicable from April 1, allow the deferment of tax payments on shares allotted to start-up employees under ESOPs or under stock ownership programmes. Taxes will be changed accordingly due to the annual income by the individual.

Impacts due to this change in rule

Their are lot of benefits from this new rule and create the great change in individual. Earlier low class people are affected and they must pay the tax along with suffering. Without having the food these people will pay tax. It is greatly reduced and they need not pay any taxes. It helps to buy a house in low profit.

Reason for new rule

Due to Covid-19, their was the lockdown in national by prime minister Narendra Modi. Coronavirus had spread from China to the entire world. They were the large death in each countries due to this pandemic disease. To control the spread of Coronavirus and to save the lives, there was the lockdown for three weeks. As India is a developing country, their were the many people suffering for the daily food and shelter. Due to this lockdown, people are suffering for the food and shelter. so, the prime minister of Pakistan Imran Khan apologize the people for the lockdown by Narendra Modi. They were men and some children and women joined them. The police had tired to stop them but they continued the journey by walking to village. This created many issues men and the police. There are willing to stay in native place due to lackdown in work. These people also affects financial. there is no savings or any account. Recently bank had not given loans the any individual, these peoples are affected to the greater extent. To overcome this crises, The government of India had decided to help the people by financial. To make people more comfortable, G20 summit also organised to fight against the financial crises due to Covid-19. The people are very much affected when got lockdown in Delhi- UP borders. The police provided them transport fertility, but they refused. Because they is no money due to the lockdown in their jobs. Many people shared the emotion to the police. their cries are came to government.

Conclusion

New thing which had come onto force is highly beneficial to the people. The suffering are taken away by one rule and financial crises is easily to overcome by the government.

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