The new income tax rule changes from April 1, 2022. Details here
Many changes are being made to the income tax rules beginning with the next fiscal year. Income tax on crypto assets, filing of updated returns, new tax rules on ETH interest, and tax relief on Covid-19 treatment are some of the major changes effective April 1 2022.
7 major income tax changes starting April 1, 2022
1) Tax on cryptos
India’s crypto-asset tax regime will be rolled out gradually over the fiscal year beginning April 1. The provisions on the 30% tax will be effective at the beginning of the financial year while those related to the TDS of 1% will come into force from July 1st. , 2022. The 2022-23 budget clarified the levy of income tax on crypto-assets. The threshold limit for TDS would be ₹50,000 per year for specified persons including individuals/HUF who are required to have their accounts audited under the Information Technology Act.
2) Crypto losses cannot be offset against crypto gains or other assets
The Indian government has tightened crypto standards by prohibiting losses incurred in a particular digital asset from being deducted from income from another version of a crypto mining. The government will not allow tax breaks on infrastructure costs incurred while mining crypto assets, as they will not be treated as the cost of acquisition. For example, if you do a ₹1000 gain on bitcoin and a ₹700 loss on Ethereum, you have to pay taxes on ₹1000 and not on your net profit of ₹300. Similarly, you cannot offset gains and losses on cryptocurrency with gains and losses on other assets like stocks, mutual funds, or real estate.
3) Submission of the updated IT declaration
A new provision is inserted that allows taxpayers to file an updated return for errors or mistakes made in tax returns. Taxpayers can now file an updated return within two years of the end of the relevant tax year.
4) NPS Deduction for State Government Employees
State government employees will now be able to claim a deduction under Section 80CCD(2) for the NPS contribution by the employer of up to 14% of their base salary and dearness allowance, which is in accordance with the deduction available to central government employees under the said heading.
5) Tax on PF account
The Central Board of Direct Taxes (CBDT) has decided to implement Income Tax Rule (25th Amendment) 2021 from April 1. This means that a tax-free contribution limit of up to ₹2.5 lakh is taxed on the Employees Provident Fund (EPF) account. If the contribution exceeds this amount, the interest income will be taxed.
6) Tax relief on Covid-19 treatment costs
According to the June 2021 press release, a tax exemption was granted to people who received money for Covid medical treatment. Similarly, money received by family members upon death of a person due to Covid will be exempt up to Rs. 10 lakhs for family members if such payment is received within 12 months of death. date of death. This amendment will come into effect retrospectively from April 1, 2020.
7) Tax relief for people with disabilities
The parent or guardian of a disabled person can purchase insurance for that person
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