The new fiscal year 2022-23 here with new Income Tax regulations, which will be effective from 1st of April 2022. There have been a lot of changes, amendments and revisions which you need to be mindful of. Here are the major changes that you should keep a tab upon.
Taxation on Cryptos
Somehow (reluctantly so) the government greenlit Crypto trading in town. However it has come with a considerable cost at the expense of crypto holders. Crypto is yet to get a sanctified recognition like other assets and commodities. By virtue of its volatile nature, Virtual Digital Assets (VDA) will accrue 30 percent taxes from 01st of April 2022. Effective 01st July 2022, there will be 1 percent deduction of TDS as well.
Crypto Tax On Loss
The regulations are stringent even if crypto holders accrue loss. Any of the Crypto losses (no matter how significant) won’t be set off against gains. The government also ain’t entertaining tax relief on infra set-up costs for mining crypto currencies. Crypto holders are liable to pay 30% taxes regardless of loss in the net profit amount. This is a thorn in the heels of the crypto industry that needs to be amended soon to harken a booming business for crypto.
Taxation On EPF
Well well. . .EPF may bhi agar you have bahot sara dhan toh bhi you are gonna pay taxes on the interests! From April 01 2022, CBDT (Central Board of Direct Taxes) will apply Income Tax’ 25th amendment (Rule 2021) on Employee Provident Funds. If there’s a contribution exceeding INR 2.5 lakh in the PF account, then it is liable for taxes.
Taxation Relief On Covid-19 Treatment & Disability
However all is not glum and gloom with the new amendments. There’s a considerable sigh of relief for the pandemic afflicted. Any amount upto INR 10 Lakh received within 12 months of the demise of a family member due to Covid is exempted from taxes.
The income taxation has been laxed for persons suffering from disabilities too. Insurance schemes taken for a disable person will be exempted from taxes under certain conditions.
ITR Provision For Omission
There’s a new feature in the ITR that will help eliminate errors from filing. Updated returns can be done within two years from the assessment year.
Oh and btw if you haven’t linked your Aadhaar with PAN, you are in a soup.
New Penalty ! Rule 114(5A), non linking of PAN and AADHAR till 31.3.2022. 500 for first 3 months after that 1000 Rs.@IncomeTaxIndia @theicai @Nirc_Cma @taxguru_in @TimsyJaipuria @casansaar @CAclubindia PAY PAY PAY pic.twitter.com/uH2lKill0w
— Atit Dilipbhai Shah CA (@AtitDShahCA) March 30, 2022
SEE ALSO: 2021 The Year Of CyberCrimes: $14 Billion Worth Cryptos Scammed
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