Big financial changes set to kick in from January 1; Know here

It is the first day of the New Year but we should all brace of plenty of financial changes in our life. From January 1, 2021, a lot of changes in rules in financial matters will kick in.

These changes will have potentially big impact of the lives of common man. DNA takes a look at some of the big financial changes that will come into force on first day of 2021.

1. Cheque payments rule

It is an effort to check banking fraud by the Reserve Bank of India (RBI) by introducing the ‘positive pay system’ for cheque, under which re-confirmation of key details may be needed for payments beyond Rs 50,000. While availing this facility is at the discretion of the account holder, banks may consider making it mandatory in case of cheques for Rs 5 lakh and above.

2. Contactless card transactions limit

The RBI informed that the limits for contactless card transactions and e-mandates for recurring transactions through cards and UPI will be enhanced from Rs 2,000 to Rs 5,000. RBI said that the move is aimed to expand adoption of digital payment in a safe and secure manner. These are also well-suited to make payments in a safe and secure manner, especially during the current pandemic.

3. Google Pay web app

Google is all set kill the web application of its payments application – Google Pay – in January and is will also charge users for instant money transfers. On Google Pay, the customers have so far been able to manage payments as well as send money from both a mobile app or from pay.google.com. However, as per the latest notice, now, Google has said that the web app site will no longer work from January next year.

4. GST-registered small business

Businesses with up to Rs 5 crore turnover will have to file only four GST sales returns, or GSTR-3B, from January instead of 12 at present, according to sources quoted by news agency PTI. The quarterly filing of Return with Monthly Payment (QRMP) Scheme would impact almost 94 lakh taxpayers, about 92 per cent of the total tax base of the goods and services tax (GST). With this, from January onwards, small taxpayers would need to file only eight returns (four GSTR-3B and four GSTR-1 returns) in a year.