Several new rules will take effect on April 1, the first day of the new fiscal year.

Several new tax rules go into force on April 1, the first day of the new fiscal year. Tax restrictions on EPF (Employee Provident Fund) interests, TDS (Tax Deducted at Source), and crypto-assets are among them.

Here’s a list of ten new items to remember this fiscal year.

  1. Updated ITR filing: A new provision will provide taxpayers an additional opportunity to correct any inaccuracies or mistakes on their income tax returns. Individuals will have two years from the end of the relevant assessment year to file any revised returns.
  2. The Central Board of Direct Taxes (CBDT) has agreed to alter the Employees Provident Fund (EPF) guidelines and the tax-free contribution maximum of up to 2.5 lakh rupees. The EPFO will have two separate accounts: one for non-taxable income and another for taxable income. And any additional contributions (including principal, will be taxable and not just the interest).
  3. The Central Board of Direct Taxes (CBDT) has agreed to alter the Employees Provident Fund (EPF) guidelines and the tax-free contribution maximum of up to 2.5 lakh rupees. The EPFO will have two separate accounts: one for non-taxable income and another for taxable income. And any additional contributions (including principal, will be taxable and not just the interest).
  4. Changes in Long-Term Capital Gains: Currently, long-term capital gains on the sale of listed stock and mutual funds are subject to a maximum surcharge of 15%. However, after the revisions, this maximum percentage will apply to all assets.
  5. State government employees can now contribute to the National Pension System (NPS) and claim up to 14% of their basic income and dearness allowance through the scheme. This will now be the same as the deduction offered to employees of the federal government.
  6. Senior persons aged 75 and up are not required to file income tax returns: Any elderly citizen over the age of 75 will be excluded from filing income tax returns on the condition that they provide a declaration to the bank they use. In addition, the senior citizen is only exempt from filing if specific requirements are met.
  7. Non-KYC (Know Your Customer) compliant bank accounts will be subject to the following restrictions: Individuals whose bank accounts are not KYC compliant will be unable to operate their accounts beginning April 1, 2022. Cash deposits and withdrawals will be restricted, among other things.
  8. Interest rate reset for Pradhan Mantri Vaya Vandana Yojana: The interest rate for the Pradhan Mantri Vaya Vandana Yojana is always reset annually. On April 1, the new rates are expected to be announced. The rate was 7.4 percent per year in 2020-2021, and it has remained constant since then.
  9. Removal of the benefit for home loan deduction: Until the fiscal year 2021-22, a citizen could take an additional deduction on home loans with interest up to Rs 1.5 lakh for properties worth less than Rs 45 lakh. This scheme has not been extended by the finance minister for the coming fiscal year.
  10. New TDS rules for the sale of immovable property: This is a tax deducted at the point of purchase when purchasing an immovable property other than agricultural land (land, building, factory, etc.). If you are purchasing immovable property, you must deduct 1% as TDS (as a buyer) from the sale price above Rs 50 lakh and pay the remainder to the seller. Previously, the tax was deducted from the money paid by the buyer to the seller.