10 Changes Coming Into Effect From April 1 For Next Financial Year

Several new tax rule changes are coming into effect from April 1, when the new financial year begins. These include tax rules on Employee Provident Fund (EPF) interests, Tax Deducted at Source (TDS), and crypto-assets.

Updated filing of ITR: A new provision will give taxpayers an additional opportunity to update their Income Tax Returns for any errors or mistakes made. Individuals will be able to file any updated return within two years from the end of the relevant assessment year.

Crypto tax: All crypto gains from various virtual digital assets will now be taxed at a flat rate of 30 per cent. This includes gifts in the form of cryptocurrency as well. Further, the government has introduced norms by disallowing losses incurred in one virtual digital asset to be set off against an earning in another.

Tax on EPF account: The Central Board of Direct Taxes (CBDT) has decided to change the Employee’s Provident Fund (EPF) rules and tax-free cap contributions of up to ₹ 2.5 lakh. The EPFO will maintain two different accounts: One for non-taxable and one for taxable. And any contribution over and above (including principal, will be taxable and not just the interest).

Change in Long Term Capital Gains: Currently, there is a maximum surcharge of 15 per cent on long term capital gains on the sale of listed equity and mutual funds. After the changes, however, this maximum percentage will be extended toward all assets

State government employees can contribute to National Pension Scheme (NPS): State government employees can now contribute and claim up to 14 per cent of their basic salary and dearness allowance under the National Pension System scheme. This will now be the same as the deduction available to central government employees.