Budget 2021 getting presented on February 1st would have a direct impact on the public in general. However, apart from the union budget, some other significant changes will happen from February 1st and will have a substantial effect on the money matters of the Indians. Oil companies increasing LPG cylinder price, Punjab National Bank or PNB changing its ATM cash withdrawal rules for its debit cardholders, to Air India starting new domestic and international flights are some of them. We list out below some significant changes taking place from February 1st.
1.LPG Cylinder Price
On every first day of the month, oil companies announce LPG prices. Hence, this will be one of the significant changes from February 1st as it directly connects with the middle and lower class. In December 2020, oil companies had increased the LPG gas price twice and kept the LPG gas cylinder price unchanged in January 2021. Hence, the LPG price hike is widely expected from February 1st.
2.Budget 2021 expected proposals on income tax, Public Provident Fund (PPF)
When Finance Minister Nirmala Sithaaman stands to present the Union Budget 2021 in the parliament, the salaried middle class can expect relaxation in income tax. The business community can expect tax cuts in customs duty and import duty to boost ‘Aatma Nirbhar Bharat.’ The salaried middle class may get an increase in zero income tax liability cap increased by an additional Rs 50,000 to Rs 1,00,000, claims some media reports. Similarly, the PPF cap for a particular financial year can be raised to Rs 2.5 lakh. In comparison, income tax exemption under Section 80C is expected to go up to Rs 3 lakh in the upcoming budget.
3.PNB ATM withdrawal rule
Punjab National Bank (PNB) has already announced to change its ATM withdrawal rules that have been widely appreciated as it would help contain online bank fraud. Informing the PNB customers, the public sector bank tweeted, “To protect our esteemed customers from fraudulent ATM activities, PNB will be restricting transactions (financial & non-financial) from Non-EMV ATM machines from 01.02.2021.” So, from February 1st, PNB customers won’t be able to withdraw cash from Non-EMV machines.
Supreme Court to deliver the verdict on Franklin Templeton Mutual Fund’s Schemes
On February 1st, Supreme Court will hear the Franklin Templeton Mutual Fund case. The apex court is expected to deliver its verdict on the funds’ disbursement in six closed mutual fund schemes of the fund house. The fund house had to face massive criticism from the unitholders of these six mutual fund schemes. It had asked the unit holder to e-vote as to whether these schemes should continue or should be closed. After the criticism, the fund house closed these six schemes. The Supreme Court verdict on these six mutual fund schemes will directly impact around 3 lakh unitholders of these six schemes.
4.Air India to start new flights
Air India and its low-cost subsidiary Air India Express have announced many new flights from February 1st. Air India Express has announced daily flights from Trichchi to Singapore from February 1st to March 27th, 2021. There will be further route connections like Kuwait to Vijayawada, Hyderabad, Mangalore, Trichchi, Kozhikode, Kannur, and Kochchi.
5.PMC Bank deadline for a new offer by investors
The PMC Bank management has decided to restore the bank’s lost pride by again starting its operations. In this regard, they have asked their investors to give their new offer, and for that, the deadline is February 1st. Like Centrum Group-BharatPe and UK-based Liberty Group, some of its investors have already given their proposal to the PMC Bank.