The new financial year (FY 2022-23) begins today and several new tax rule changes come into effect. These would include tax rules on the Employee Provident Fund interests and also a 30 per cent tax on crypto assets.
Starting April 1 2022, all forms of virtual digital assets including Cryptocurrency and NFTs sold for profit will be taxed at 30 per cent. Whenever a crypto asset is sold it 1 per cent TDS will be deducted.
Tax on crypto assets
The Central Board of Direct Taxes said that the interest on PF contribution of an employee above Rs 2.5 lakh will be taxed from April 1 2022.
Investment amount for mutual funds starting today will be digital. You cannot invest by paying cheque, bank draft or by any physical means.
Investments in mutual funds only digitally:
Home buying to be costlier:
Starting April 1, buying homes will become costly as the government will stop the benefit of tax exemption under Section 80EEA for first time home buyers.
Around 800 medicines will get costlier which include antibiotics and painkillers. The prices of these 800 medicines will be costlier by 10 per cent.
Medicines to get costly:
From April 1 2022, the interest amount in the Post Office Monthly Income Scheme, Senior Citizen Saving Scheme or Post Office Term Deposit will not be paid in cash. A savings account will have to be opened for this. It is also mandatory to link the already existing bank account or post office account with the small savings account of the post office.
The scrappage policy for government vehicles will also come into effect from April 1 2022.