The new financial year has started from Friday (April 1). Many rules related to tax have come into effect from today. These include the rule of 30% tax on profits from cryptocurrencies. The rule of 1 per cent TDS on sale of immovable property valued above Rs 50 lakh has also come into effect from April 1.
After the change in the rules, the higher of the transaction value or the stamp duty value, will be considered as the basis for TDS of 1%. The government believes that this will reduce the trend of selling real estate at a lower price. As far as tax on profits of cryptocurrencies is concerned, 30 per cent tax will have to be paid on it, even if the total income of the individual is less than the tax exemption limit of 2.50 lakh.
No deduction will be allowed in case of tax on profits of cryptocurrencies. This rule will have a direct impact on millions of cryptocurrency investors. Their profit from crypto will be reduced. Any kind of profit on cryptocurrencies so far
There was no tax. The new rule will reduce people’s interest in investing in cryptocurrencies.
Finance Minister Nirmala Sitharaman announced tax on cryptocurrencies in the budget presented on February 1 this year. He had said that profits from cryptocurrencies will be taxed at 30 percent. With this announcement, it was assumed that the government has recognized cryptocurrencies. But, later the Finance Minister clarified that the imposition of tax does not mean that it has got the recognition of the government.
The additional deduction of ₹ 1,50,000 available to home buyers on home loan interest will also be waived. The government used to give this additional deduction in case of home loan interest on purchase of a house up to Rs 45,00,000. This deduction was only on home loans taken up to March 31, 2022. This means that this additional exemption in terms of tax on buying a house will no longer be available.
The government had earlier extended the home loan sanction period for the scheme from March 31, 2020 to March 31, 2021. Later this deadline was extended to March 31, 2022. The government did not say anything about extending the duration of the scheme in the budget this year.
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