New Income Tax Rules Effective in Financial Year 2022-23 That You Must Know About

With the beginning of the new financial year, many income tax rules related to taxation, deduction, and investment have been changed. Some old rules have been changed and some new rules have been added. These updated tax rules are going to have a direct impact on taxpayers’ pockets. So, if you are one of the taxpaying individuals, you need to know about updated tax rules effective from 1st April 2022.

According to the Central Board of Direct Taxes, the new tax rules have been updated under the 25th amendment and are effective from April 1, 2022. In this, the amount up to 2.5 lakhs in the EPF account is tax-free. Exceeding more, taxpayers will have to pay the tax on the interest earned on the total amount

Profits Made on Crypto Assests Are Taxable

The cryptocurrencies including Virtual Digital Assets (VDA) or (NFT) are now taxable. According to the new rule, 30% tax and 1% tax on TDS will be deducted from profits made on crypto assets. Deduction on crypto assets will be applicable even if taxable income is less than 2.5 lakhs. Also, if there is a loss in earnings from crypto or digital assets, it won’t be compensated.

Tax Exemption on Covid-19 Treatment Expenses

Tax exemption on the amount received for Covid-19 treatment from employers will be continued from the start of the pandemic. But the exemption will only be allowed for the amount less than Rs.10 lakhs. Similarly, if Covid-19 patients receive financial assistance from someone else, that amount too will be free from tax.

Tax Exemption to Disabled Persons

The government has given relief to disabled individuals and physically handicapped dependents. The parents and guardians of disabled persons can take advantage of tax exemption on their return filing.

No Extra Discount on Home Loan

Buying a new house can be more expensive now in this financial year as the government has stopped giving tax benefits under section 80EEA. In the 2019 budget, tax benefits were given to the first-time home buyers who paid the interest on the home loan under section 80EEA.