Indore (Madhya Pradesh): Those who are hoping that, the new financial year, which is starting on Friday, will ease their financial liabilities and enjoy some exemptions, must think again. Exemptions are going to be withdrawn or made conditional as in the case of home loans and, for the first time, PF contributions are going to be made taxable with conditions.
PF gains are going to become taxable
From the new financial year, interest received on contributions of more than Rs 2.5 lakh in the PF account of employees will attract income-tax. Now, calculation of tax in the accounts of employees who contribute more than Rs 2.5 lakh annually will have to be divided into two parts. One account will have an exempt contribution, while the other will have a contribution of more than Rs 2.5 lakh, which will be the taxable part. But, for government employees, this limit will be Rs 5 lakh in the Government Provident Fund (GPF).
Home loan exemption is made conditional
Now, the interest paid on buying an affordable house, for the first time, will not get the benefit of additional deduction under Section 80EEA. Under this section, if the value of a house is less than Rs 45 lakh, one can claim deductions of up to Rs 1.5 lakh in home loan interest payment. This deduction or exemption is in addition to the exemption of Rs 2 lakh available under Section 24B. This benefit was only for taxpayers who had taken a loan from a financial institution like a bank between April 1, 2019, and March 31, 2022, to buy their house. Now, on buying a house in the new financial year, the benefit of this additional deduction will not be available.
30% I-T to be levied on crypto currencies
From April 1, clear rules regarding tax on virtual currency (crypto) will also be applicable. From the new financial year, virtual digital assets or crypto will be taxed at 30%. In such a situation, if a person makes a profit on selling crypto currency, he will have to pay tax to the government and 1% TDS will also be deducted as per rules from July 1 on its sale.
Life-saving drugs, too, are going to expensive
The government has given permission to increase the prices of life-saving medicines, due to which the prices of medicines can increase by 10.7%. Hence, the prices of many medicines will increase from the new financial year.
If PAN & Aadhaar not yet linked, you must pay fine
From the new financial year, for taxpayers who have not linked their Permanent Account Number (PAN) with Aadhaar, their PAN will become inoperative and it will be treated as if they do not have a valid PAN. This will cause problems in their demat accounts and mutual fund transactions. The PAN is to be linked with Aadhaar before June 30, and a penalty of Rs 500 will be levied for linking it after that.
E-invoicing made mandatory for turnover above Rs 20 cr
Businessmen with a turnover of Rs 20 crore will also come under the purview of mandatory e-invoicing from April 1. Thereafter, they will be issued an e-invoice for every business-to-business transaction. If the e-way bill is not issued, action can be taken to seize the goods on the way during transportation of the goods under Section 129. If such a dealer does not issue the e-invoice, the input tax credit to the buyer will be at risk, assuming the buyer does not have a valid invoice.
Companies will have to manage audit trail
Now, every company will have to keep the audit trail feature in the accounting software of their books. Later, if any accounting entry is changed, information about that change will be present in the new features of the software ‘audit trail’. Arrangements will have to be made so that the audit trail is not closed from the accounting software and the audit trail will be made available on demand.
‘Many changes on the anvil’
‘The new financial year is starting on April 1 and this New Year will see many changes. In the past several months, the central and state government has made many such changes in the laws, which are going to have a direct impact on the earnings, expenses and investments of people’ — CA Kirti Joshi, former chairman of CA-Indore Branch of ICAI
