Income Tax: The new financial year is going to start from 1st April 2022. There are going to be changes in many income tax rules from the new financial year. This also includes taxes on crypto assets. Interest on PF investment above Rs 2.50 lakh will be taxable. Apart from this, tax exemption will also be available on the expenditure incurred on the treatment of COVID-19. Today we are telling you which rules related to tax are going to change.
Tax on profits from crypto
Finance Minister Nirmala Sitharaman has announced a 30% tax on income arising from transfers or transactions of cryptocurrency virtual digital assets. Along with this, he also announced to levy 1% TDS on every transaction related to cryptocurrency. If someone transfers crypto to your account or gifts it to you, you will still have to pay tax on that digital asset.
There will be no relief even if there is a loss in crypto
If there is profit in crypto, the government will have to pay tax. Even if you make a loss on crypto, you will still have to pay tax. That is, if there is a loss on any digital asset, you cannot set it off with profit. For example, if you have both bitcoin and shiba inu, if you are making a profit of 100 rupees in one and a loss of 100 rupees in the other, then you will have to pay tax at the rate of 30 percent on the gain of 100 rupees of bitcoin but lose 100 rupees. Yes, you have to remove it. You cannot set off the advantages of one with the disadvantages of the other.
tax on pf account
According to the new EPF rule, if the employee’s deposit in PF in a financial year exceeds Rs 2.5 lakh, then it will be taxed. The thing to keep in mind is that this rule is only for the account of the employee who is deposited in PF. This rule will not apply to the amount deposited by the company in your PF.
Tax relief on the cost of COVID-19 treatment
According to the new rules, the money received by the family members on the death of a person due to COVID will also get tax exemption. But there is a condition in this that this money should be received within 12 months of death. It should not exceed Rs 10 lakh.
Facility to file updated IT returns
From the new financial year, taxpayers can re-fil their ITR if they want to rectify any discrepancy or mistake. Now taxpayers can file updated returns for 2 years from the assessment year.
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