Every new financial year brings new changes. This year too changes are coming in tax on PF, crypto, home, e-invoice, covid-expenses, investment in mutual fund, post office rules, etc. One must know the new changes from April 1, 2022 in different areas.
Top 10 new changes from April 1, you should know :
1. Taxation on PF account
From April 1, the government will implement new income tax rules on PF account. According to the new rules, an existing PF account can be divided into two parts, each of which will be taxed separately. In one account, the EPF account is subject to a tax-free upto the contribution limit of Rs 2.5 lakh, as per the rules. In another account, if you contribute more than Rs 2.5lakh, the interest you earn will be taxed. At the same time, government employees’ tax-free GPF contributions are limited to Rs 5 lakh per year.
2. Crypto Tax
On cryptocurrencies, from April 1, Income Tax will be charged. In the recent budget, the Finance Minister had said that all virtual digital assets (VDA) or crypto assets will be taxed at 30 per cent, if there is a profit on selling them. Apart from this, whenever a crypto asset is sold, then 1% TDS will be deducted on its sale w.e.f. 1st july 2022.
3. No extra relief to homebuyers
In the budget of 2019-20, the central government had announced an additional Rs 1.50 lakh income tax benefit on home loans to those buying a house up to Rs 45 lakh. Later this facility was extended in the budget 2020 and 2021, but in the budget presented by Finance Minister Nirmala Sitharaman on 1 February 2022, this facility will not be extended from the new financial year 2022-23 starting from April 1,2022. Such homebuyers may have to pay more tax from the next financial year 2022-23.
4. Tax relief on Covid-19 treatment expenses and compensation
As per the recent amendments, tax exemption has been provided to persons who have received money for Covid medical treatment. Likewise, money received by family members on the 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 from the date of death. This amendment will be effective retrospectively from April 1, 2020.
5. GST e-invoice
CBIC has reduced the turnover limit for issuance of e-invoice (e-invoice) under the GST from the earlier fixed limit of Rs 50 crore to 20 crore. This rule is also being implemented from April 1, 2022.
6. Reset Invoice Number Series
As per the GST advisory released in 2019, with the start of the new financial year, GST taxpayers should start a new invoice series, unique for the financial year. A similar provision is there in Rule 49 of the CGST Rules 2017, in respect of the issue of Bill of Supply by registered taxpayers availing Composition Scheme or supplying exempted goods or services or both. If the provisions of Rule 46 or Rule 49 are not adhered to, apart from being a compliance issue, taxpayers may face problems while generating E-Way Bill on the E-way bill system or furnishing their Form GSTR 1 or applying for a refund.
7. Changes in the rules of Axis Bank and PNB
From April 1, 2022, the rules on the salary or savings account of Axis Bank are going to change. The bank has increased the limit of minimum balance in savings account from 10 thousand to 12 thousand rupees. According to the information given on the website of AXIS Bank, the bank has also changed the prescribed limit of free cash transactions to four free transactions or Rs 1.5 lakh.
At the same time, Punjab National Bank is implementing PPS in April. From April 4, verification has been made mandatory for checks of Rs 10 lakh and above.
8. Post Office rules
The rules of post offices are going to be necessary changes for those investing in Small Savings Schemes of the Post Office. From April 1, 2022, the interest money on Post Office Monthly Income Scheme (POMIS), Senior Citizens Savings Scheme (SCSS) and Term Deposit Accounts will be available in the savings account only. You cannot take interest money in cash by going to the post office. On linking the savings account, the interest money will be transferred electronically. The government has made it mandatory to use savings account for depositing monthly, quarterly, annual interest in case of MIS, SCSS, Time Deposit accounts.
9. Rules for investment in mutual funds
From April 1, payment for investment in mutual funds will not be able to be made through cheque, bank draft or any other physical medium. Actually, mutual fund transaction aggregation portal MF Utilities (MFU) is going to stop payment facility through check-DD etc. from March 31, 2022. Under the change, from April 1, 2022, for investing in mutual funds, you will have to pay only through UPI or Netbanking.
10. Price of gas cylinder may increase
Like every month, there may be a change in the price of gas cylinder on the first day of April also. These days the prices of petrol, diesel and LPG are increasing, in such a situation it is expected that the prices of gas cylinders can be increased once again in April.
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