Happy New Financial Year 2022 : Get your finances in shape this financial year

By Minu Nayak

(The Quiver) :In India, A year period starts from 1st April and ends on 31st March. This period in which the income is earned is known as the Financial Year or Fiscal Year. This year several new rule changes are coming into effect from April 1, when the new financial year begins.

The income tax returns are filed and taxes for a company are usually paid in the next year after the end of the Financial Year. This next year in which the income is assessed to tax is called as the Assessment Year.So in case the accounts are being prepared for the year starting 1st April 2022 and ending on 31st March 2023, this period would be called Financial Year 2022-23. And this income would be assessed to tax in the next year and this period would be called as Assessment Year 2023-24.

Here are 7 new things to keep in mind this financial year;Have a look:

1. Senior citizens aged 75 years and above exempted from filing Income Tax Returns
Any senior citizen above the age of 75 will be exempted from filing income tax returns with the condition that a declaration must be given to the bank that the individual uses. Further, the senior citizen is only exempted from filing if certain conditions are fulfilled.

2. Non-KYC (Know Your Customer) compliant bank accounts to have restrictions
Individuals whose bank account is not KYC compliant will not be able to operate their bank account from April 1, 2022. Restrictions will be placed on cash deposits, cash withdrawals etc.

3. New rules on TDS on sale of immovable property
This is a tax deducted at the source to purchase an immovable property (land, building, factory etc.) other than agricultural land. If you are buying immovable property, you need to deduct 1% as TDS (as a buyer) from the sale price above rupees 50 lakh and then pay the rest to the seller. Earlier, tax was deducted on the money paid by the buyer to the seller.

4. 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.

5. State government employees can contribute to National Pension Scheme (NPS)
Now, State government employees can 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.

6. Removal of benefit for home loan deduction
Until the financial year of 2021-2022, there was an additional deduction a citizen could take on home loans with interest up to rupees 1.5 lakh for properties valued less than rupees 45 lakh. The finance minister has not extended this scheme to the next financial year.

7. 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

Hope our this piece of informative content will be helpful for our readers.