Income Tax Rules: Are you aware of these new rules related to income tax?
There have been some changes in the income tax rules in the country from the new financial year, while some new rules have also been implemented. With the beginning of the new financial year, many rules related to taxation, deduction and investment have changed, which have become effective from April 1, 2022. The working, salaried, business class should be aware of all these rules and changes as they will directly affect them. We are taking a look here once, what are the rules, which have been implemented since the beginning of this month.
PF Tax
According to the Central Board of Direct Taxes, from April 1, 2022 (25th amendment), the new rules of income tax have been implemented. The meaning of this new amendment is that if you put only up to 2.5 lakhs in your EPF account, then it will become tax free. When you put more money in the account, then you will have to pay the money on the interest earned from it.
Crypto Tax
The government has finally started taxing cryptocurrencies including Virtual Digital Assets (VDA) or (NFT). According to the new rule, 30% tax and 1% tax on source (TDS) will be deducted on profits made on crypto assets. This will be applicable even if your taxable income is less than 2.5 lakhs.
Loss in crypto will not be compensated
Earnings from crypto or digital assets will be taxed, but if there is a loss contrary to the earnings, then it will not be able to compensate it from its profit.
Tax relief on Covid-19 treatment expenses
Tax exemption will continue from the year 2022 on the amount received for the treatment of Kovid-19. This amount should not exceed Rs.10 lakhs. If a person dies due to Kovid, then the amount will be received within 12 months of his death.
Tax relief to disabled persons
The government has also given relief to disabled persons. If there is a disabled person, then his parents and guardians can take insurance in return and can also take advantage of tax exemption on it.
No extra discount on home loan
Buying a house can now become more expensive for the common man as the government has discontinued the income tax benefits under section 80EEA with effect from 1st April 2022. Let us tell you that the government had included section 80EEA in the income tax related rules in the budget of the year 2019. According to this rule, the first time home buyers used to get an extra discount for those who paid the interest in the home loan.
NPS deduction of state government employers
State government employees can now contribute up to 14% of their basic salary and dearness allowance to NPS. Earlier this contribution limit was only up to 10%. That is, now employees of Central Government can claim this deduction under section 80CCD (2) like deduction.
