New financial year has been started from 1 April 2022. Changes in GST and Income Tax Rules has come in force with commencement of FY 2022-23. These are the main changes :-
• GST – Companies having a turnover above INR 20 crore to generate B2B e-invoices: Businesses (except few specified) with a turnover of more than Rs 20 crore will be required to generate electronic invoices for B2B transactions with effect from April 1, 2022. Under the Goods and Services Tax (GST) Act, with effect from October 1, 2020, e-invoicing was made mandatory for business-to-business (B2B) transactions for companies with a turnover of more than Rs 500 crore, which was subsequently Extended for those whose turnover was from October 1, 2020. 100 crore from 1 January 2021.
• New rules on EPF interest: Among the biggest changes that are happening from April 1, 2022, the most important one is the tax on PF account. The Central Board of Direct Taxes (CBDT) has decided to implement the Income-tax (25th Amendment) Rule 2021. That is, a cap of tax free contribution up to Rs 2.5 lakh is being imposed in the EPF account. If the contribution exceeds Rs. 2.5 lakh, then the interest income will be taxed. At the same time, the tax free limit of contribution to GPF of government employees is Rs 5 lakh per annum.
• Filing of updated return: An opportunity has been provided to the taxpayer to include missed or undisclosed income or any other error resulting to less payment of tax in the original tax return. The taxpayers can file updated return after the end of the relevant assessment year but before the completion of 24 months. The taxpayer is required to pay 25 per cent penalty on additional tax if the updated return is filed between 1 to 12 months or 50 per cent penalty on additional tax if the updated return is filed between 13 to 24 months.
• Crypto taxation: The rules of cryptocurrencies has come into force from April 1. Income from cryptocurrencies will attract 30% tax . You will have to pay 1 percent TDS on doing crypto related transactions. This rule will be implemented from 1 July 2022.
• TDS on sale of immovable property: The TDS rule related to the transaction of non-agricultural immovable property has also been changed. According to the new rule, now the higher of the sale price or stamp duty value on transactions of non-agricultural property valued more than Rs 50 lakh, will be considered as basis for 1 percent TDS.