These are the new changes in taxation that have kicked in from April 1

These are the new changes in taxation that have kicked in from April 1
  • As the new financial year starts, there are quite a few changes in tax and other rules that one should know about.
  • Let’s take a look at the new rules effective from April 1.
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With the start of the new financial year, there are several changes in regards to taxation, deduction and investments that are to be effective from April 1, 2022.

Let’s take a look at the new rules that have been introduced for new fiscal year:

Crypto tax
The government has finally introduced tax on virtual digital assets (VDA) or cryptocurrencies including non-fungible tokens (NFT). According to the new rule, profits made on crypto assets will attract 30% tax and 1% tax deducted at source (TDS). This will apply even if your taxable income is below ₹2.5 lakh.

Non-KYC penalty
If you have not linked your PAN and Aadhaar till now, you will face a fine up to ₹1,000, according to the Central Board of Direct Taxes. Besides, providing an invalid PAN will also attract fines up to ₹10,000.

PF tax

According to the notification by the Central Board of Direct Taxes, interest on the provident fund (PF) contribution of an employee above ₹2.5 lakh in a year will be taxed from April 1.

From today, April 1, the surcharge on long-term capital gains on all types of assets will be capped at 15%.

Removal of benefit under section 80EEA
Buying a home may become more expensive for a common man now as from April 1 2022, the government has stopped income tax benefit under Section 80EEA.

Section 80EEA is available for first time home buyers with stamp duty value of the property up to ₹45 lakh for an additional deduction of ₹1.5 lakh.

ITR filing
If you have failed to file your income tax return by March 31, 2022, then you are liable for a penalty. Taxpayers who have an annual income of more than ₹5 lakh shall pay a fine of ₹5000 (on taxable income) if they do not file belated tax returns. For those whose income is less than ₹5 lakh, the fine will be ₹1,000 (on taxable income).

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