From 1st of April, 2022 that is today new income tax rule is going to change. Let’s have a look at the new tax rules effective from the new financial year.
From today onwards, 1st of April 2022 there are some of major changes in new tax rules on EPF interest, filing of updated returns, Income tax on crypto assets, and tax relief on Covid-19 treatment.Â
1) Crypto Tax
In India, the crypto asset tax regime will gradually roll out in the financial year. 30% tax provisions will be effective at the start of the fiscal year. Although from 1st of July 2022, 1% TDS will come into effect.
The Budget of 2022-23 has brought transparency regarding the imposition of income tax on crypto assets. The TDS threshold limit for specified person would be ₹50,000 a year. Under the IT Act, it also includes individuals/HUFs who are required to get their accounts audited.Â
2) Crypto losses cannot be set off against crypto gains or other assets
Government of Indian has tightened norms for crypto by rejecting losses experienced in digital assets to be set off against income from another version of a crypto holding.
Although government does not allow tax breaks on infrastructure costs experienced while mining crypto assets as it won’t be treated as the cost of acquisition.Â
3) Crypto received gifts will be taxable
Receiving a crypto gift or any other virtual digital asset, it will be liable for taxation even as a gift.Â
4) Filing of updated IT Return
A recent provision is added which allows the taxpayers to file an updated return for errors or mistakes done in income tax returns. Within two years from the end of the relevant assessment year, taxpayers can now file an updated return.Â
5) Tax on PF account
From 1st of April CBDT (the Central Board of Direct Taxes) has clarified to implement 25th Amendment Income-tax Rule 2021.
That means on EPF (the Employee Provident Fund) account a cap of tax-free contributions up to ₹2.5 lakh is being imposed. The interest income will be taxed, if the contribution is made above.Â
6) Tax relief for disabled person
The parent or guardian of a differently-abled person can take an insurance scheme for such a especially abled person.Â
7) Tax relief for Covid-19 expenses
 As per the Press Release on June 2021, tax exemption has been provided to persons who have received money for Covid medical treatment.
This amendment will be effective retrospectively from April 1, 2022. 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.Â
8) Removal of benefit under section 80EEA
From 1st of April 2022, there is an additional deduction of ₹1.5 Lakh won’t be available to taxpayers. Under section 24 of I-T Act, other existing deductions on account of home loan interest up to ₹2 Lakh would be continued. Â
9) NPS deduction to State government employees
Under Section 80CCD(2), the State government employees will now be able to claim deduction for NPS contribution by the employer up to 14% of their basic salary and dearness allowance, which is in line with the deduction available to the Central government employees under the said section.Â
10) Surcharge on LTCGÂ
Till 31st March 2022, there was a cap of 15% surcharge on long term capital gain on the sale of listed equity or mutual funds. While from 1st April 2022, this cap will be extended to long term capital gain on all assets.Â
 Published By: Manan Khurana
Edited By: Subbuthai Padma
