By Sanjiv Bajaj
Income tax guidelines hold altering and taxpayers want to pay attention to them to be on the appropriate aspect of regulation. For revenue tax functions, a monetary yr (FY) begins in April and ends on March 31 of the next yr. Currently, we’re within the monetary yr 2022-23 and there have been sure amendments in tax guidelines that will probably be relevant from this FY onwards. Let’s see a few of them:
NPS contribution: For the central authorities workers, the federal government was already contributing 14% of worker’s wages in direction of worker’s NPS account. Starting this FY, state authorities workers will obtain a 14% contribution into their NPS account from their respective state governments. Deduction for employer contribution to NPS has been elevated from 10% to 14% for state authorities workers on par with central authorities workers. However, it has not been prolonged to non-govt workers.
EPF contribution: In EPF, 12% of wages is contributed by the worker however guidelines enable the worker to contribute a better quantity as a voluntary provident fund. Till now, the complete contribution earned tax-free curiosity revenue. Going ahead, in case your contribution in direction of EPF is greater than Rs 2.5 lakh a yr, the curiosity earned on the quantity exceeding the edge restrict will probably be taxable. For the federal government workers, the restrict will stand at Rs 5 lakh.
File an up to date IT return: A brand new provision allowing taxpayers to file an up to date return on fee of further tax has been launched. This up to date return will be filed inside two years from the tip of the related evaluation yr. This new system of submitting revised ITR will assist taxpayers voluntarily declare any missed revenue and scale back litigation.
Virtual Digital Assets Tax: Virtual Digital Assets will embrace cryptos similar to Bitcoin, Ethereum, and many others., and different digital belongings similar to Non-fungible tokens (NFTs) and will probably be topic to taxation. Income from switch of any digital digital asset is to be taxed on the charge of 30% relevant from April 1, 2022; TDS of 1% to be charged on funds made for switch of digital belongings relevant from July 1, 2022 and the present of digital digital belongings can even be taxed within the fingers of the recipient.
Post workplace schemes: The authorities has made it necessary for the usage of financial savings account for credit score of month-to-month, quarterly, yearly curiosity in case of publish workplace MIS, SCSS, time deposit accounts. If you might be withdrawing curiosity revenue earned on publish workplace MIS, SCSS and time deposit accounts within the type of money, you is probably not in a position to take action from April 1, 2022.
The author is joint chairman & MD, Bajaj Capital
Source: www.financialexpress.com”
