With the beginning of a new financial year, the central government had earlier mentioned the changes in the finance and economy section during the budget session of the year 2022-23. These changes will be implemented from today and are likely to change the steady financial activities of everyday people. These are some of the major changes:-
According to the Budget of 2019-20, the government had announced that with the purchase of a house worth more than 45 lakhs, will enjoy a deduction of Rs. 2 Lakh according to section 24 and a deduction of interest payments up to 1.5 lakh according to the ATEA act. It concludes to total relief of 3.5 lakh for interest payments or tax. In 2021, government extended the scheme till April 2022 but with the current year, the law of relief of 1.6 lakh was cut off.
From today, the Provident Fund accounts are to be divided into two parts i.e. taxable and non-taxable accounts. The central government will start taxing interest rates on Employees Provident Fund contributions over 2.5 lakh annually. These provisions have been introduced for high-incomers to tax the benefits above a certain threshold.
Crypto currency holders and investors in India will have to pay 30 percent tax under the new scheme for Taxation of Virtual Digital Assets from today. Any deduction in respect of any expenditure or allowance while computing such income will not be allowed. Gift of virtual digital assets also to be taxed on the receiver’s end. The government will also make a rule to provide for TDS (Tax Deducted at source) on payments made in relation to virtual digital assets at the rate of 1 percent.
Businesses with a turnover of more than 20 crore will have to deduct an electronic challan for B2B (business to business) transactions. This was directed by Central Board of Indirect Taxes and customs. From April 1 last year, companies with a turnover of more than 50 crore were generating e-invoicing for B2B transactions. Now, it is reduced to 20 crore.
The interest amount in Post office’s monthly Income scheme (MIS), Senior Citizen Savings Scheme (SCSS), Post Office Term Deposit (TD) schemes will no longer be available from today.