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10 Changes Will Be Effective From April 1 For The Next Financial Year


These changes will directly affect the daily lives of the people.

Several changes to the new tax rules will take effect from April 1, when the new financial year begins. These include tax rules on Employees Provident Fund (EPF) interests, Tax Deductions on Resources (TDS) and crypto assets.

Here is a list of 10 new things to keep in mind this financial year

  1. Updated ITR filing: The new provision will give taxpayers an additional opportunity to update their Income Tax Returns for any errors or mistakes made. The individual will be able to file any updated statement within two years from the end of the relevant year of assessment.

  2. Crypto tax: All crypto profits from various virtual digital assets will now be taxed at a flat rate of 30 percent. This includes gifts in the form of cryptocurrencies as well. Further, the government has introduced a norm by not allowing losses incurred in one virtual digital asset to be deducted with other income.

  3. Tax on EPF account: The Central Direct Taxation Board (CBDT) has decided to change the rules of the Employees Provident Fund (EPF) and tax -free limit contributions up to Rs 2.5 lakh. The EPF will maintain two different accounts: One for non -tax and one for taxable. And any contributions over and over (including the principal, will be taxed and not just interest).

  4. Changes in Long -Term Capital Gains: Currently, there is a maximum surcharge of 15 per cent on long -term capital gains on the sale of listed equities and mutual funds. After the change, however, this maximum percentage will be extended to all assets.

  5. State government employees can contribute to the National Pension Scheme (NPS): State government employees can now contribute and claim up to 14 per cent of their basic salary and charity allowance under the National Pension System scheme. This will now be equal to the deductions available to central government employees.

  6. Senior citizens aged 75 years and above are exempted from filing Income Tax Returns: Any senior citizen aged 75 and above will be exempted from filing an income tax return provided the declaration must be provided to the bank used by the individual. Furthermore, the senior is only exempt from filing if certain conditions are met.

  7. Bank accounts that do not comply with KYC (Know Your Customer) have restrictions: Individuals whose bank accounts do not comply with KYC will not be able to operate their bank accounts from 1 April 2022. Restrictions will be imposed on cash deposits, cash withdrawals etc.

  8. Pradhan Mantri Vaya Vandana Yojana interest rate reset: The interest rate of Pradhan Mantri Vaya Vandana Yojana is always reset every year. The new rates are expected to be announced on April 1st. In 2020-2021, that rate is 7.4 percent per year, and it has remained unchanged since then.

  9. Interest deduction for home loan deduction: Until the financial year 2021-22, there are additional deductions that can be taken by citizens for home loans with interest up to Rs 1.5 lakh for properties worth less than Rs 45 lakh. The finance minister did not extend the scheme to the next financial year.

  10. New rules on TDS on the sale of immovable property: This is a tax deducted on resources for the purchase of immovable property (land, buildings, factories etc.) other than agricultural land. If you buy immovable property, you have to deduct 1% as TDS (as buyer) from the sale price above Rs 50 lakh and then pay the rest to the seller. Earlier, tax was deducted on money paid by the buyer to the seller.

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