The Financial Year 2022-23 is rapidly approaching, and, as is customary each year, the budget has included several of the new financial and tax-related rules affecting your wallet, including tax, PF, TDS, and insurance.
This isn't to say that the new rules will just lower your purchasing power; there are a few changes that will allow you to keep a little more money in your pocket to cover the extra advantages.
Let's start with the new restrictions that will increase your financial load.
a.) Filing Belated and Updated ITRs for FY 2020-2021 has an early deadline.
The new deadline for reporting belated and updated ITRs for FY 2020-21 is March 31, 2022. The penalty for missing the deadline has also been doubled to Rs 10,000, in addition to the former deadline.So, to avoid incurring the substantial new penalty, make sure you finish your paperwork before the deadline.
b.) Interest Earned from A PF Account Is Taxed:
Starting in April 2022, every employee whose total PF balance exceeds Rs. 5 lakhs and who has taken an income tax deduction will be required to pay a tax on the interest earned from their PF account. The interest income from the PF account will also be reported on the employee's Form 16.
c.) TDS Filings will be increased
How can financial planning help you live a life free of worry, uncertainty, and insecurity? First and foremost, you must begin planning early in life, when you are still young. Let us provide a few financial planning advice for young people to brighten your post-retirement days.
d.) TIncrease the cost of third-party auto insurance.
The government recently made long-term third-party insurance mandatory for all new vehicles, for a period of three years for automobiles and five years for motorcycles. In addition, the IRDA has decided to raise the premium for third-party insurance, causing vehicle owners to spend around 17 percent to 23 percent more than before. Customers who own a car with a displacement of up to 1500 cc would pay an additional Rs. 1,500/-, while those who purchase a two-wheeler will pay an additional Rs. 600.Senior citizens over the age of 75 are no longer required to file income taxes.
All senior persons over the age of 75 who receive a pension or interest on a pension will be excused from the ITR filing process under the new rule. This exemption does not apply to senior citizens who have another source of income.
Such rules, whenever they are introduced, are always a source of contention. While some may find them beneficial, others may not. Whether we like it or not, it is our responsibility as law-abiding citizens to follow the rules and contribute to our country's growth and progress.