As the new financial year beings on April 1, several changes introduced in the Union Budget for 2022-23 will get implemented from Friday.
Luxury cars, medicines, as well as new tax rules on interest on Provident Fund, changes in home loan schemes, and other items, will become more expensive.
The National Pharmaceutical Pricing Authority (NPPA) has announced a hike in prices of over 800 essential drugs from April.
NPPA has allowed the prices of scheduled drugs that are under price control to be hiked by 10.7 per cent.
Luxury car companies like Mercedes-Benz and Audi, have announced a hike in their vehicles on April 1. These companies have citied rising input costs as a major reason behind the price hike.
As per the Union Budget, things that were to get more expensive include headphones and earphones, imitation jewellery, X-ray machines, solar cells, etc.
Senior citizens aged 75 years and above are exempted from filing income tax returns (ITR). The exemption from filing ITR is available under certain conditions that would be fulfilled by them. Senior citizen has to give a declaration to the bank.
Apart from this various virtual digital assets like cryptocurrency, and gifts in the form of cryptocurrency will now be taxed at a flat rate of 30 per cent. The government has introduced norms by disallowing losses incurred in one virtual digital asset to be set off against an earning in another.
The interest earned on the provident fund balance will no longer be exempted from tax. The new PF rule will kick in amid Employees Provident Fund Organisation (EPFO) announcing 8.1 per cent interest rate on employee provident fund (EPF) accumulations in members’ accounts for the 2021-22 fiscal, down from 8.5 per cent in the previous year.
Additional deduction on home loan interest upto Rs 1.5 Lakh on house properties valued less than Rs 45 Lakh for first time home buyers. The scheme has not been extended beyond 31st March 2022. Therefore, this additional deduction of Rs 1.5 Lakh won’t be available to taxpayers from this month.
People, who are investing in Post Office Monthly Income Schemes and term deposits, have to link their post office savings account to your bank account.
The interest on Post Office monthly income scheme, senior citizen saving scheme or term deposit will not be given in cash but rather in the savings accounts from April.
Investment in mutual funds will not be paid by cheque, bank draft, or any other physical means from April. Now the user will only get the facility of UPI or net banking.
