Many changes are going to happen from April 1, which will affect your pocket. While tax will have to be paid on PF account and cryptocurrencies, the additional exemption available on home loan will also have to be forfeited. Apart from this, many other changes are also happening which will increase the burden on your pocket.
1. Excess discount on home loan ends
Section 80EEA was added to the Income Tax Act in the 2019 budget. Under this section, first-time home buyers used to get the benefit of an additional tax deduction of Rs 1.5 lakh on the interest paid on the home loan. This section was not carried forward in the Budget 2022.
2. Tax on PF Account
The most important of the changes that are going to happen is the tax on PF account. Tax free contribution limit is being imposed in EPF account up to 2.5 lakhs. If the contribution is made above this, then the interest income will be taxed. At the same time, the limit of tax free contribution to GPF of government employees will be Rs 5 lakh per annum.
3. Tax on Earnings from Crypto
In the budget 2022, it was announced to impose 30 tax on all virtual digital assets or crypto. The profit earned by the investor from selling cryptocurrencies will be taxed. Whenever someone sells cryptocurrency, TDS will also be deducted at one percent of his sale.
4. No cash interest in post office
The rules related to investment in Post Office Monthly Income Scheme, Senior Citizen Savings Scheme or Post Office Term Deposit are also going to change. The interest amount will not be available in cash. You have to open a savings account. Post office savings account or bank account will also have to be linked to these schemes.
5. Medicines Will Get Expensive
The prices of about 800 essential medicines are going to increase by 10.7. These also include paracetamol. The National Pharmaceutical Pricing Authority (NPPA) has given its approval for changes in the Wholesale Price Index of these drugs.
6. The rule of e-invoicing will change
CBIC (Central Board of Indirect Taxes and Customs) has reduced the turnover limit for issuance of e-challans (electronic challans) under Goods and Services Tax (GST) to Rs 20 crore from the earlier fixed limit of Rs 50 crore. This rule is also coming into force from April 1, 2022.
7. Shock to Axis Bank customers