New rules related to income tax 2022-23, which you need to know
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| Income Tax New Rules 2022 |
Income tax rules are constantly changing and it is very important for the taxpayers to be aware of them. The financial year for the purpose of income tax is from 1st April to 31st March.
Presently the financial year 2022-23 is going on. For this financial year, some changes have been made in the tax related rules by the Income Tax Department, which will be applicable throughout this financial year. Let us take a look at some of these important changes.
Income Tax New Rules 2022
1. NPS Contribution
The Center already contributes 14 per cent of the basic salary to the NPS (National Pension Scheme) account of its employees. From this financial year, state government employees will also receive a contribution equal to 14 percent of the basic salary in their NPS account from the state government. In fact, the employer's (in this case the government) contribution to the NPS for state government employees has been increased from 10 per cent to 14 per cent of the basic pay, similar to that of central government employees, though non-government employees. For it has not been extended.
2. Contribution to EPF
Employees contribute 12 per cent of their basic salary to EPF. But according to the new rules, employees can contribute more than amount as voluntary contribution. But with this a big condition was added. Till now, the entire contribution to EPF used to be tax-free income, but now if your contribution to EPF as an employee does not exceed Rs 2.5 lakh per annum, then interest income tax on contributions in excess of the limit of Rs 2.5 lakh Will be eligible. For government employees, this limit is Rs 5 lakh.
3. Will be able to file updated returns
As per the new provisions, taxpayers have been allowed to file an updated income tax return for payment of additional tax, if required. These updated returns can be filed within two years from the end of the relevant assessment year. This special feature is of great importance. Allowing for revised ITR filing will help taxpayers to make voluntary declaration of any missed income and avoid legal action. This will benefit both the government and the taxpayer.
4. Taxes on Virtual Digital Assets
Virtual digital assets would include cryptos such as bitcoin, ethereum, and other digital assets such as non-fungible tokens (NFTs), etc. Income from such assets will now be taxed at the rate of 30 per cent. This rule has come into effect from 1 April. Apart from this, 1% TDS will also be deducted on payment made for virtual asset transfer which will be applicable from July 1, 2022. Not only this, the recipient of the virtual digital asset as a gift will also have to pay tax on it.
5. Post Office Saving Scheme
In case of Post Office, MIS, SCSS and Fixed Deposit accounts, the government has made it mandatory to credit monthly, quarterly and annual interest for the use of savings account. If you make cash withdrawal of interest received from Post Office, MIS, SCSS and Fixed Deposit accounts, you will not be able to do so after 1st April 2022.
Disclaimer
To get official information, you can visit the official website of Income Tax and see the new rules there.