New income tax rules effective from April 1, Details here

New-Delhi: With the new fiscal year, there are many changes in the income tax rules effective from April 1.

With effect from 1st April 2022, if the employee’s contribution to Provident Fund account exceeds Rs 2.5 lakh during the financial year, the interest earned on the excess contribution is taxable in the hands of the employee year after year. Currently, interest on any amount of contribution to an EPF account is tax-free.

A new provision is inserted that allows the taxpayers to file an updated return for errors or mistakes done in income tax returns. Taxpayers can now file an updated return within two years from the end of the relevant assessment year.

There was an additional deduction on home loan interest upto Rs 1.5 Lakh on house properties valued less than Rs 45 Lakh for first time home buyers. The government has not extended this scheme beyond 31st March 2022. Therefore, this additional deduction of  Rs 1.5 Lakh won’t be available to taxpayers from 1st April 2022. Other existing deductions on account of home loan interest upto Rs 2 Lakh would be continued under section 24(b) of IT act.

The amendment also includes provisions for state government employees, Covid affected families and differently-abled persons. Special provisions of tax exemption will be available to Covid affected families too. There will be no tax levied on the money received up to Rs 10 lakh by the family members of the deceased, if they have received the amount within 12 months of the death. Finally, if the guardians of such individuals buy an insurance scheme for them, they can also claim tax exemption under certain circumstances.

The crypto asset tax regime in India will gradually roll out in the financial year starting April 1. Provisions on the 30% tax will be effective at the start of the fiscal year while those related to the 1% TDS will come into effect from July 1, 2022.

In this year financial Budget , the government said that it will have income from transactions in virtual digital assets, which will attract a tax of 30 percent From April 1.