The Financial Year 2022-23 is just around the corner and just like every year, this year too the budget has introduced various finance and a tax-related new set of rules related to Tax, PF, along with TDS and Insurance which will affect your pocket.
This doesn’t mean that the new rules will only reduce your pocket power, there are a few amendments that will even create a little more room in your pocket to accommodate the additional benefits.
Let’s start with the new rules that will add a burden to your pockets.
1. Early Deadline for Filing Belated and Updated ITR of FY 2020-2021:
Compared to the last year’s deadline, the new deadline for filing belated and revised ITR for FY 2020-21 is March 31, 2022. Along with the earlier deadline, the amount of penalty for missing out on the deadline has also been increased to Rs 10,000.
So, make sure that you complete your filing before the deadline and avoid paying the hefty new penalty.
2. Tax On The Interest Earned From The PF Account:
Starting from April 2022, any employee whose total PF amount exceeds Rs. 5 Lakhs and those who have taken a deduction in the income tax will have to pay a tax on the interest earned from the PF Account. The interest income from the PF account will also be mentioned in Form 16 of the employee.
3. Increased TDS Filings:
In order to increase the number of ITR Filings, the finance ministry has introduced special provisions under 206AB and 206CCA under the IT act. As per these new provisions, the amount of TCS (Tax Collected At Source) or TDS (Tax Deducted At Source) will be increased. The higher deduction amount will be applicable to the entities that do not file the income tax and this will lead to an increase in the number ITR filings.
4. Increase Third-Party Auto Insurance Premium
Recently the government made long-term third-party insurance compulsory for every new vehicle, i.e. 3 years for cars and 5 years for motorcycles. And not the IRDA has decided to increase the premium of third party insurance making the vehicle owners pay approx. 17%-23% more as compared to the previous premium rates. Overall, the customers owning a car of up to 1500 cc will have to pay approx. Rs.1,500/- more and the ones buying a two-wheeler will have to pay approx. Rs. 600 more.
While the above-mentioned new rules from April 2022 added an extra load on your pocket, the next one aims to reduce the much-required burden of income tax filing from the shoulders of senior citizens above the age of 75.
Also Read: How to Save Income Tax? Tax Saving Guide.
Eliminated Income Tax Filing for Senior Citizens Above 75 Years
As per the new rule, all senior citizens above the age of 75 earning from pension or interest on pension will be exempted from the process of ITR filing. However, this exemption is not for senior citizens having another source of income.
Whenever introduced, such rules are always a matter of debate. While some may find them good, some may not find them useful. Whether we like it or not, as law-abiding citizens, it is our duty to abide by the rules and make our contribution towards the growth and development of our country.
What do you think of these rules? Share your views in the comment section and if you wish to know more about such rules and their effects on your life, feel free to connect with our expert and get an expert’s view.
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