New Delhi: New fiscal, new rules! With the new fiscal year FY 22-23 kicking in today (April 01), new and reformed Income Tax rules will also kick in.
From April 1, several rules pertaining to personal taxation is going to change. Here’s looking at 5 major Income Tax rule changing from the new fiscal.
30 percent tax on virtual digital assets
Income from transactions in virtual digital assets will attract a tax of 30 percent From April 1. (Also read: Crypto Tax: How to report it while filing ITR, what will be taxed and what not?)
Finance Minister Nirmala Sitharaman in her Budget speech in February said, “There has been a phenomenal increase in transactions in virtual digital assets. The magnitude and frequency of these transactions have made it imperative to provide for a specific tax regime. Accordingly, for the taxation of virtual digital assets, I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30 per cent.”
Updated ITR filing window
The Finance Minister also gave respite to people filing their revised Income Tax Return (ITR) from next fiscal. FM has announced that the revised tax filing window will remain open for two years from the year of assessment in case of less filing of tax. The rule will be applicable from April 1
Finance Minister Nirmala Sitharaman proposed in her budget address for 2021-22 that PF payments of more beyond Rs 2.5 lakh per year be taxed. The Central Board of Direct Taxes (CBDT) has issued new guidelines that outline how the interest on an employee’s provident fund contribution that exceeds a specific level is taxed.
