What is going to change for income tax payers from today?

As the new financial year brings new tax rules, taxpayers should bear in mind that the deadline for filing late income tax returns for Assessment Year 2021-22 was March 31.
 
If an assessee missed this deadline, he or she will have to pay a penalty and interest, and may even face imprisonment for violation.

Further, not linking PAN with Aadhaar from today will carry a penalty. Rs 500 will be charged if it’s linked within three months from today and Rs 1,000 if done thereafter.

Although the PAN will remain operative, linking it to Aadhaar will cost you money and if left unlinked beyond March 31, 2023, PAN will become inoperative.

Perhaps the most important tax rule that’s coming into effect today is the flat 30% tax on gains from the transfer of virtual digital assets, including cryptocurrencies and non-fungible tokens.

A new provision allows individuals to file an updated return for errors or mistakes within two years from the end of the relevant assessment year on payment of a penalty.
Both these provisions come with certain riders.

The surcharge on long-term capital gains on all types of assets will be capped at 15% from today. This cap was previously applicable only on listed equity and mutual fund units.
 
Moreover, the interest on an employee’s excess contribution over Rs 2.5 lakh to the Provident Fund account will be taxed year after year.
 
The additional interest deduction of up to Rs 1.5 lakh under Section 80EEA on home loan taken for affordable housing project has been discontinued.

Higher TDS and TCS rates will be applicable for those who have not filed their ITR for FY21, the late filing deadline for which ended yesterday.

The taxation regime for cryptocurrencies and NFTs is being rolled out gradually. While the gains will be taxed at 30% effective today, the provisions related to 1% TDS will come into effect from July 1.
 

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