10 New Income Tax Rules for FY22-23
Let’s take a look at the new income tax rules that have been introduced for this fiscal year:
1) The interest earned on the employee’s contribution to the provident fund (PF) account will be taxed if the contribution amount in a financial year exceeds ₹2.5 lakh.
2) Any income from the transfer of a virtual digital asset will be taxed at a flat rate of 30%.
3) Any loss incurred during the transfer of a virtual asset would not be allowed to be set off against any income (including gain from a sale of another virtual digital asset) under any provision of the act. Only the cost of acquiring such an asset can be claimed in this computation.
4) If you receive a gift in form of cryptocurrency or any other virtual digital asset, it would be liable for taxation as a gift.
5) A new provision is inserted that allows the taxpayers to file an updated return for errors or mistakes done in income tax returns.
6) The State government employees will now be able to claim deduction under Section 80CCD(2) for NPS contribution by the employer up to 14% of their basic salary and dearness allowance. (Initially has been 10%)
7) Presently, there is a cap of 15% surcharge on long term capital gain on the sale of listed equity or mutual funds. From 1st April 2022, this cap is extended to long term capital gain on all assets.
8)The additional deduction of ₹1.5 Lakh on house properties valued at less than ₹45 lakh for first time home buyers won’t be available to taxpayers from 1st April 2022.
9) The tax exemption has been provided to persons who have received money for expenses incurred on treatment of Covid 19. Likewise, money received by family members on the death of a person will be exempt for up to 10 lakhs for family members.
10) Budget 2022 has introduced a new tax benefit for the parent/guardian of a disabled person. If the parent/guardian of a disabled person buys a savings life insurance policy with the latter as the beneficiary then the parent/guardian would be eligible for deduction from gross income before tax subject to certain conditions.
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