As the new financial year (FY 2022-23) begins today, several new tax rule changes came into effect. These include tax rules on Employee Provident Fund (EPF) interests and 30% tax on crypto-assets.
Here’s a list of what will be the big change in the rules on April 1
1. PF will be taxed
According to the notification of the Central Board of Direct Taxes, interest on the PF contribution of an employee above Rs 2.5 lakh will be taxed from April 1, 2022.
If you invest more money than the above limit, then you will have to pay tax on the interest earned.
2. Tax on Cryptocurrency
Starting April 1, 2022, all forms of virtual digital assets (VDA), including Cryptocurrency, NFTs sold for profit will be taxed at 30 per cent. Apart from this, whenever a crypto asset is sold, then 1% TDS will also be deducted.
3. Buying home to get costlier
From today, buying a house will become expensive as the central government will stop the benefit of tax exemption under section 80EEA to first time home buyers.
4. Over 800 medicines to get expensive
The prices of more than 800 medicines, including pain killers, antibiotics, anti-virus, will increase by more than 10 percent from April 1.
5. Investing in mutual funds only digitally
Investment in mutual funds will not be able to be paid by cheque, bank draft, or any other physical means from April 1.
Now the user will only get the facility of UPI or net banking.
6. Automakers to hike vehicle prices
Several auto companies will increase the price of vehicles from April 1, 2022. Also, the scrappage policy will be applicable for government vehicles from today.
7. Axis Bank hikes minimum balance limit
Axis Bank has increased the limit of monthly balance for savings accounts from Rs 10,000 to Rs 12,000.
These rules of the bank will be applicable from 1st April 2022.
8. No interest will be available in cash in the post office
Rules relating to an investment in Post Office Monthly Income Scheme (MIS), Senior Citizen Saving Scheme (SCSS) or Post Office Term Deposit are also going to be changed.
From today, the interest amount will not be paid in cash. People will have to open a savings account for this.
Besides, it has also been made mandatory to link the already existing bank account or post office account with the small savings account of the post office.
9. Changes in GST e-challan rules:-
The CBIC (Central Board of Indirect Taxes and Customs) has reduced the turnover limit for issuing e-challans (electronic invoices) under the Goods and Services Tax (GST) to Rs 20 crore from the earlier limit of Rs 50 crore.
