The Financial Year 2022-23 is just around the corner and just like every year, this year too the budget has introduced various finance and a tax-related new set of rules related to Tax, PF, along with TDS and Insurance which will affect your pocket.

This doesn’t mean that the new rules will only reduce your pocket power, there are a few amendments that will even create a little more room in your pocket to accommodate the additional benefits.

Let’s start with the new rules that will add a burden to your pockets.

1. Early Deadline for Filing Belated and Updated ITR of FY 2020-2021:
Compared to the last year’s deadline, the new deadline for filing belated and revised ITR for FY 2020-21 is March 31, 2022. Along with the earlier deadline, the amount of penalty for missing out on the deadline has also been increased to Rs 10,000.

So, make sure that you complete your filing before the deadline and avoid paying the hefty new penalty.

2. Tax On The Interest Earned From The PF Account:
Starting from April 2022, any employee whose total PF amount exceeds Rs. 5 Lakhs and those who have taken a deduction in the income tax will have to pay a tax on the interest earned from the PF Account. The interest income from the PF account will also be mentioned in Form 16 of the employee.  

3. Increased TDS Filings:
In order to increase the number of ITR Filings, the finance ministry has introduced special provisions under 206AB and 206CCA under the IT act. As per these new provisions, the amount of TCS (Tax Collected At Source) or TDS (Tax Deducted At Source) will be increased. The higher deduction amount will be applicable to the entities that do not file the income tax and this will lead to an increase in the number ITR filings.