8 Big Changes from April 1st: Higher Taxes, Home Loan Interest Ends; Check All Details

The financial year 2022-23 begins tomorrow, April 1st. Many rules will alter as a result of this. These will have an influence on our earnings, expenses, and investments. Let’s go over the eight major changes that will have an impact on your wallet.

1. Provident Fund (PF): Employees who have deposited more than Rs.2.5 lakh in their PF account must pay income tax on the interest earned. For tax purposes, the total will be divided into two parts. Contributions of less than Rs.2.5 lakh are tax-free in one, whereas contributions of more than Rs.2.5 lakh are taxed in the other. This maximum will be Rs.5 lakh for government employees.

2. Affordability: If you are purchasing an inexpensive house for the first time, the interest paid will not be eligible for the additional deduction of 1.5 lakh under section 80EEA. If the value of the residence is less than 45 lakhs, interest payments can be deducted up to 1.5 lakhs. This deduction or exemption was in addition to the Rs.2 lakh exemption provided by section 24B. This benefit was only available to taxpayers who took out a loan to buy a home between April 1, 2019 and March 31, 2022.

3. Cryptocurrency: Beginning April 1, 2019, clear tax rules will apply to virtual currency as well. Virtual digital assets, also known as cryptocurrency, will be taxed at a rate of 30%. If a person makes a profit from selling crypto money, he must pay taxes. From July 1, a 1% TDS will be withheld from sales.

4. Medicines: Healthcare will become more expensive in the new financial year. The price of about 800 life-saving pharmaceuticals will rise by 10%, increasing the cost of therapy.

5. PAN: There is now a penalty for linking a PAN to an Aadhaar number. It will be Rs.500 until June 30, 2022. After then, a penalty of 1000 rupees must be paid. If a PAN number is not connected by March 31, 2023, it will become inactive.

6. GST: Businesses with a turnover of more than 20 crores would be required to use e-invoicing. Every business-to-business transaction will generate an e-invoice. Failure to do so may result in goods being confiscated during transport. In addition, the buyer’s input tax credit will be jeopardised.

7. Audit Trail: Every business should have an audit trail option built into their accounting software. The audit trail’s objective is to keep a record of the changes made after entry in the company’s transactions. The audit trail will be available on demand.

8. Traveling has become more expensive: Traveling on the National Highway will be costly. The National Highways Authority of India (NHAI) has increased the toll charge by Rs.10 to Rs.65, effective today at 12 p.m. It has been raised by Rs.10 to 15 for small vehicles and Rs.65 for large vehicles.

NPS and Mutual Fund Changes

• State employees will be able to claim a greater deduction for their employer’s NPS payment. After two years, you will be eligible to file revised income tax returns.
• Tax will not be deducted on amounts up to Rs.10 lakh received for corona treatment.
• Mutual fund investments can only be made through UPI or Net Banking.
• Senior citizens over the age of 75 are exempt from filing returns.