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NEW INCOME TAX RULES TO TAKE EFFECT FROM APRIL 1.
As it happens with the ending of the financial year certain changes happen in income tax rules. As with the continuity, with the ending of the current financial year FY 21-22, on 31st March 2022, many new significant rules regarding the income tax and a few changes in the existing rules to take effect from the new financial year FY 22-23, from April 1, Friday which may affect the online transactions and expenses. The major changes which are going to be effective in the financial years are related to the Income-tax on crypto assets, filing of updated returns, new tax rules on EPF interest, and the tax relief on the treatment of Covid-19. As per the Union Budget of FY 22-23, Union Finance Minister Nirmala Sitharaman announced that a tax of 30% will be charged on income from virtual digital assets such as cryptocurrencies assets which include Bitcoin, Ethereum and Non-fungible tokens {NFTs} from 1st April. Apart from these changes, there will be one per cent TDS and gift tax under certain conditions to be paid by the receiver of such digital assets. The union finance minister also said in her speech that, ‘there is a phenomenal rise in such transaction and have made it imperative to provide for a specific tax regime’.
Crypto losses can’t be set off against crypto gains or other assets: The government clarified a major setback for the crypto business, in the Budget 2022, which recommends that the investors will not be allowed to set off losses in one crypto asset against losses in another. Filing of updated IT return: The government has also announced ‘‘updated returns’’ that a taxpayer can use to correct any errors or omission in their income tax returns on the payments of the additional taxes. The revised returns can be filed but, within two years of the conclusion of the relevant assessment year. Tax on PF account: The Central Board of Direct Taxes {CBDT} has decided to apply the 25th amendment rule in the new financial year from April 1. The tax will be imposed on the interest earned on the contribution to the Employees Provident Fund {EPF} if the amount is more than the limit of Rs 2.5 lakh every year.
In simple terms for calculation, the contribution to the PF accounts for up to Rs. 2.5 lakh is tax-free. Tax relief on the expense of the treatment of the Covid-19: A press had been released on June 2021, and according to the released press, any person who has been received money for the treatment of Covid-19, has been exempted from the payment of tax. New TDS rules on the sale of immovable property: New TDS rules on buying and selling of immovable property will come into effect from the first day of April. As per the new rules, the buyer of immovable property will deduct tax at the rate of 1% on the sum paid to the seller or stamp duty value of the property, whichever is higher.TDS on the sale of immovable property is applicable if the sale value of immovable property/stamp duty of the property exceeds Rs.50 lakh. Earlier, the tax was deducted from the money paid by the buyer to the seller.
Tags : FINANCIAL YEAR , FINANCE MINISTER , TAX , CRYPTOCURRENCIES , EPF ,BUDGET
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