Provident Fund (PF): Employees who have deposited more than Rs 2.5 lakh in a PF account must pay income tax on the interest earned. For tax purposes, the total will be divided into two parts. In one, the contribution is tax-free, while in the other, the contribution is taxable if it exceeds Rs 2.5 lakh. This limit will be Rs 5 lakh for government employees.
Affordable home: If you are purchasing an affordable home for the first time, you will not be eligible for the additional deduction of 1.5 lakh under section 80EEA. If the house’s value is less than 45 lakhs, interest payments could have been deducted up to 1.5 lakhs until now. This deduction or exemption was in addition to the Rs 2 lakh exemption provided by section 24B. This benefit was only available to taxpayers who took out a home loan between April 1, 2019 and March 31, 2022.
Cryptocurrencies: From April 1, clear tax rules will apply to virtual currency as well. Virtual digital assets, also known as crypto, will be taxed at a rate of 30%. If a person makes money by selling crypto currency, he must pay taxes. From July 1, a 1% TDS will be deducted from sales.
Medicines: In the new fiscal year, healthcare will also be more expensive. The cost of treatment will rise by 10% as the price of approximately 800 life-saving drugs rises by 10%.
PAN: Linking a PAN to an Aadhaar number will now result in a penalty. Until June 30, 2022, it will be Rs 500. Following that, a penalty of Rs 1000 must be paid. If a PAN number is not linked by March 31, 2023, it will become inactive.
GST: Businesses with a turnover of more than $20 million will be required to use electronic invoicing. Every business-to-business transaction will be accompanied by an electronic invoice. Failure to do so could result in goods being confiscated during transport. In addition, the buyer’s input tax credit will be jeopardised.
Audit Trail: Every business should have an audit trail feature built into their accounting software. The audit trail’s purpose is to keep track of any changes made to the company’s transactions after they’ve been entered. On-demand audit trail to be made available.
Travel is becoming more expensive: Traveling on the National Highway will be costly. From 12 p.m. today, the National Highways Authority of India (NHAI) increased the toll tax by Rs 10 to Rs 65. The fee for small vehicles has been raised from 10 to 15 rupees, and the fee for commercial vehicles has been raised from 10 to 65 rupees.