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Thursday, February 2, 2023

Families affected by Covid-19 can now breathe a sigh of relief

The new fiscal year 2022-23 comes with new income tax regulations, which go into effect on April 1st, 2022. You need to be aware of many changes, amendments, and revisions, and below are the most important ones to keep an eye on.

Taxation on Cryptos

Despite its reluctance, the government decided to approve Crypto trading in town. However it has come with a considerable cost at the expense of crypto holders. Crypto is yet to get a sanctified recognition like other assets and commodities. By virtue of its volatile nature, Virtual Digital Assets (VDA) will accrue 30 percent taxes from 01st of April 2022. Effective 01st July 2022, there will be a 1 percent deduction of TDS.

Crypto Tax On Loss

Even if crypto holders incur losses, the regulations are stringent. Any of the Crypto losses (no matter how significant) won’t be set off against gains. The government also ain’t entertaining tax relief on infra set-up costs for mining crypto currencies. Crypto holders are liable to pay 30% taxes regardless of loss in the net profit amount. This is a thorn in the heels of the crypto industry that needs to be amended soon to harken a booming business for crypto.

Taxation On EPF

Well well. . .EPF may bhi agar you have bahot sara dhan toh bhi you are gonna pay taxes on the interests! From April 01 2022, CBDT (Central Board of Direct Taxes) will apply Income Tax’ 25th amendment (Rule 2021) on Employee Provident Funds. If there’s a contribution exceeding INR 2.5 lakh in the PF account, then it is liable for taxes.

Taxation Relief On Covid-19 Treatment & Disability

However all is not glum and gloom with the new amendments. There’s a considerable sigh of relief for the pandemic afflicted. Any amount upto INR 10 Lakh received within 12 months of the demise of a family member due to Covid is exempted from taxes.

The income taxation has been laxed for persons suffering from disabilities too. Under certain conditions, insurance schemes taken for a disable person will be exempted from taxes.

ITR Provision For Omission

There is a new feature in ITR that will help eliminate filing errors. Updated returns can be done within two years from the assessment year.

Oh and btw if you haven’t linked your Aadhaar with PAN, you are in a soup.

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