As the new financial year begins, several rules are changing from 1 April 2022. These changes will affect the pocket of the common man. Check eight rules that will change from tomorrow:
Tax on PF account
Starting from April 1, the central government will tax interest on Employees Provident Fund (EPF) contributions above Rs. 2.5 lakh annually. The new rule will only apply to employee contributions to the EPF account, and employer contribution will remain tax-free.
Crypto tax
From 1 April, the gains from various virtual digital assets (VDA) such as bitcoin, dogecoin etc. will be taxed at a flat rate of 30%. TDS at the rate of 1% shall be deducted on transactions in such digital asset classes from July 1. Also, if you receive a gift in form of cryptocurrency or any other virtual digital asset, it would be liable for taxation as a gift.
Aadhaar-PAN linking
If you have not linked your Aadhaar card with your PAN by today, i.e. March 31, 2022, you can face a penalty of Rs 500 during April-June, and Rs 1,000 till March 2023.
KYC
Individuals whose bank account is not KYC compliant will not be able to operate their bank account from April 1, 2022. Restrictions will be placed on cash deposits, cash withdrawals etc.
Post Office scheme
The interest amount in Post Office's Monthly Income Scheme (MIS), Senior Citizen Savings Scheme (SCSS), Post Office Term Deposit (TD) schemes will no longer be available in cash from April 1, 2022. The interest will only be credited in account holder’s post office savings account or bank account. In case the account holder is not able to link his/her savings account with the schemes accounts, the outstanding interest should be paid only through credit in post office savings account or by cheque.
No additional tax deduction for buying affordable house
If you are planning to buy an affordable house in FY 2022-23, then note that from 1 April 2022, the additional tax deduction up to Rs 1.5 lakh under section 80EEA will not be available. This is because the government has not extended this tax break in Budget 2022.
Medicines
Prices of essential medicines including painkillers, antibiotics, anti-infective are set to go up from April, with the government allowing an increase of over 10 percent for the scheduled drugs.
GST
The Central Board of Indirect Taxes and Customs has reduced the turnover limit for issuance of e-challans (electronic challans) under Goods and Services Tax (GST) to Rs 20 crore from the earlier fixed limit of Rs 50 crore.