Income Tax Rules In India: 10 New Income Tax Rules Effective From April 1
Income Tax Rules 2022: Here are 10 changes from crypto tax to EPF interest rate
India has entered the new fiscal year from April 1, 2022. With the new beginning, Income Tax Department has introduced new Income Tax rules and regulations. From Crypto tax to tax on Employee's Provident Fund (EPF), here are ten changes in the Income Tax rules in India.
Income Tax Rules 2022: Here are 10 changes from Crypto Tax to EPF Interest Rate:
1. Tax on Cryptocurrencies: From April 1, a flat 30 per cent tax will be levied on crypto assets. These will be considered the new-age asset class. According to a report by Mint, the investors may stay in the investment for longer periods of time in order to boost their income despite taxation.
2. Transfer of virtual assets: In the Budget 2022, Finance Minister Nirmala Sitharaman had put forth the government's stance on the transfer of virtual currencies. From April 1, the loss incurred from the transfer of any virtual asset will not be allowed to be set off against any other income. This also includes any gain from the sale of virtual tokens. More clearly, virtual tokens will be considered like any other capital assets, which would need the investors to pay capital gains tax.
3. Gifting of Cryptocurrencies: Any cryptocurrency or digital token, given as a gift would still make the receiver/ sender liable to pay the tax.
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Income Tax Rules In India: 10 New Income Tax Rules Effective From April 1
4. Tax on EPF: Unlike earlier, now if the employee's contribution to the provident fund (PF) exceeds Rs 2.5 lakh per annum, it will be taxed. This is the first time a cap on the EPF is being levied.
5. Long term capital gain: Till April 1, there was a cap on the surcharge of 15 per cent on the long term capital gains from equity and mutual funds. Now, it will be levied on all the long term assets gains.
6. Buying a new house?: For the first time, an additional deduction of Rs 1.5 lakh has been allowed for first-time home buyers, if the value of the house is less than Rs 45 lakh.
7. Treatment of Covid-19: If a person has received any amount of money for the expenses incurred on treatment of Covid-19, they will not be liable to pay any tax on it. Also, in case of death from Covid-19, money received by the family of the deceased is free from tax, up to Rs 10 lakh.
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8. Updated Income Tax Return: The government has allowed the filing of a new 'Updated return' to correct the errors or mistakes in the original income tax return. This, according to Mint, will boost voluntary tax compliance. It will be allowed for the time period of two years, after the end of the financial year.
9. Parents/ Guardians of disabled: If a parent/ guardian buys a savings life insurance policy, with the disabled person being the beneficiary, then they can deduct the policy amount from their gross income for the purpose of taxation.
10. State Government employees: There is good news for state government employees as well. Now, they can deduct up to 14 per cent of their dearness allowance (DA) and basic salary for the National Pension Scheme (NPS), to get tax breaks. This limit was 10 per cent earlier.