New Delhi: The new financial is going to start soon and many new rules will come into effect from 1st April. From the first of April, many such changes are going to happen, which will affect the pocket of the common man. From tax on PF accounts and cryptocurrencies to LPG prices may increase. Also, the additional exemption available on the home loan may also end. Let us know what will be the big change in the rules on April 1 –
Tax on pf account
From April 1, 2022, there will be a big change in the tax on the PF account. A tax-free contribution limit is being imposed in the EPF account up to Rs 2.5 lakh. In such a situation, if the contribution is made above this, then income tax will be charged on the interest. The limit of tax-free contribution to GPF of government employees will be Rs 5 lakh per annum.
Additional discount on home loan ends
The government had added a new section 80EEA to the IT Act in the 2019 budget. Under which first-time homebuyers will be given the benefit of an additional tax deduction of up to Rs 1.5 lakh on interest payment of a home loan. In Budget 2022, this section was not extended further and this exemption has come to an end.
Tax on earnings from cryptocurrency
From 1st April, reining in cryptocurrencies is also starting. Finance Minister Nirmala Sitharaman had announced a 30 percent tax on all virtual digital assets or crypto in the budget of 2022-23. In such a situation, if the investor makes a profit on selling cryptocurrency, then he will have to pay taxes to the government.
Medicines will become expensive from April 1
With the beginning of the new financial year, the expenditure on medicines will increase. The price of more than 800 essential medicines is going to increase by 10.7 percent. It also includes the most commonly used drugs like paracetamol. The National Pharmaceutical Pricing Authority (NPPA) has given its approval for changes in the Wholesale Price Index of these drugs.
Interest will not be available in cash in the post office
The rules related to investment in Post Office Monthly Income Scheme (MIS), Senior Citizen Saving Scheme (SCSS), or Post Office Term Deposit are also going to change. The interest amount will not be given in cash from April 1. Customers have to open a savings account for this.
Changes in GST E-Invoice Rule
CBIC (Central Board of Indirect Taxes and Customs) has reduced the turnover limit for issuance of e-challans (electronic challans) under the Goods and Services Tax (GST) to Rs 20 crores from the earlier prescribed limit of Rs 50 crores. This rule is also applicable from 1st April 2022.
Axis Bank increased the minimum balance limit
Axis Bank is implementing new rules for customers having salary or savings account and has increased the minimum balance limit in savings account from Rs 10,000 to Rs 12,000. The bank has also changed the limit for free cash withdrawal.
Now only online payment in mutual funds
For investment in mutual funds, payment will not be made through cheque, bank draft, or any other physical medium from April 1. Mutual fund transaction aggregation portal MF Utility (MFU) is discontinuing the facility of payment through cheque-demand draft etc. with effect from March 31, 2022. Now the user will only get the facility of UPI or Netbanking.
Prices will increase in the automobile sector
Many companies including Tata Motors have announced to increase in the prices of vehicles. Tata Motors has said that it will increase the prices of its commercial vehicles by 2.5 percent. Also, Mercedes-Benz India has announced that it will increase the prices of vehicles by up to three percent. Apart from this, Toyota has announced a price hike of up to 4 percent. BMW will also increase the prices by 3.5 percent.
LPG prices will also increase
On April 1, the price of gas cylinders may increase once again. The price of an LPG cylinder can be expensive by up to Rs 100. After getting relief at the prices of LPG cylinders and petrol and diesel for the last several months, it may once again jump.
