With the current financial year ending March 31, 2022, we will witness some changes in income tax rules in TA 22-23. This change will include the addition of new rules and existing reforms. Income tax on Crypto assets, updated returns, new tax rules regarding EPF interest, and tax relief in Covid-19 treatment are some of the main changes waiting for us in the next financial year.
What’s going to change in income tax rules from April 1:
1. 30 per cent tax on profits via digital assets’ sale
From April 1, all forms of virtual digital assets, or Crypto assets, which are sold with profits will withdraw 30 percent tax. The announcement was made by Minister of Finance Nirmala Sitharaman in his budget speech last month
Meanwhile, 1 percent TDS will take effect from July 1, 2022. The threshold for TDS will be ₹ 50,000 per year for certain people, which includes individuals / HUPS required to get their audited accounts under the IT Law, Livemint reports.
2. Crypto losses cannot be set off against crypto gains or other assets
The government has forbidden losses incurred in certain digital assets to depart with revenue from other versions of the Crypto holder. Unlike certain assets under stock, mutual funds or real estate, you must pay 30 percent tax for your total profit amount, not the amount of ‘income loss’.
3. Filing of updated ITR to eliminate errors in initial file
Taxpayers will be able to file updated returns from April 1 to eliminate errors or errors carried out in the return of income tax. Updated returns can be submitted within two years from the end of the relevant assessment year.
4. NPS deduction to state government employees
State government employees will now be able to claim the reduction under the 80CCD section (2) for the contribution of NPS by employers to 14% of the basic salary and their defitess benefits, which are in line with the deduction available to the central government employees under the workers’ workers.
5. Tax on PF account
The government has decided to impose interest income tax from the Provident fund account from April 1. If the contribution is below ₹ 2.5 lakh, no tax will be collected. But if the contribution exceeds ₹ 2.5 lakh – then interest income will be taxed.
6. Tax relief on Covid-19 treatment expenses
In accordance with the press release in June 2021, tax exemptions have been given to people who have received money for Covid medical care. Likewise, the money received by family members on a person’s death because Covid will be excluded to ₹ 10 lakh for family members if the payment is received within 12 months from the date of death. This amendment will be effective retrospective starting April 1, 2020.
7. Tax relief to persons with disability
When parents or guardians of different people can take insurance schemes for the latter, they will be eligible to describe gross income before tax depending on certain conditions.
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