The financial year 2021-22 will start from 1 April 2022 (1 April 2022 Rule Change). Along with this, there are going to be changes in many such rules, which will have a direct impact on the life of the common man as well as the pocket. In this, there will be changes in many rules including tax on PF interest, prices of Audi cars, E-invoice mandatory for many companies under the GST law.
1st April 2022 Rule Changes
Audi price hike
German luxury car maker Audi is going to increase the prices of vehicles in India. Under this, the prices of all vehicles will increase by up to 3 percent. The new prices will be applicable from April 1, 2022. The company said that Audi is going to increase the price of its cars due to increasing input expenditure. The current line-up of Audi India includes the petrol-powered Audi A4, Audi A6, Audi A8 L, Audi Q2, Audi Q5 and the recently launched Audi Q7, Audi Q8, Includes Audi S5 Sportback, Audi RS5 Sportback, Audi RS7 Sportback and the luxurious Audi RS Q8 car
Third party motor insurance premium hike
Buying a new car-bike can be expensive from April. The Ministry of Road Transport in consultation with the Insurance Regulator (IRDAI) has announced the proposed rate of Third Party Motor Insurance for FY 2022-23. After this, customers will have to pay 17 to 23 percent more for third party insurance to buy new cars and bikes from April 1. The new rates may come into effect from 1 April 2022.
After the new rates, those buying a vehicle up to 1500 cc will have to pay up to Rs 1200 more for third party insurance and for a two-wheeler up to 150 cc, the customer will have to pay Rs 600 more. As per the Chunky Motor Vehicle Act, every vehicle plying on the road must have third party insurance. As per the Supreme Court order, from September 2018, 3 years third party insurance for every new 4 wheeler sold and 5 years for 2 wheelers is mandatory from the time of sale of the vehicle.
License required for sale of tobacco in Jharkhand
Tobacco products will not be sold without license from April 1, 2022 in urban areas of Jharkhand. Following the instructions of CM Hemant Soren, the process of vendor licensing for tobacco vendors has been compulsorily implemented in all the urban local bodies of the state. Under this, the shops which have a license for tobacco products, there will be a ban on sale of toffee, candy, chips, biscuits, beverages or food items. Strict action will be taken against the violators. If people below the age of 18 years are caught selling tobacco products, then they can be punished with 7 years of imprisonment, along with a fine of up to Rs 1 lakh.
Jharkhand government has made new rules under the Jharkhand Municipal Act 2011, Cigarettes and Other Tobacco Products Act 2003, Food Preservation Act 2008 and Juvenile Justice Child Care and Protection Act 2015. Under this, the campaign is also going on for giving licenses to the vendors selling tobacco in various municipal corporations, municipalities. Along with taking the license, the shopkeepers will have to fill an affidavit regarding the compliance of the rules and the promotion of tobacco products will also be banned. Tobacco products cannot be sold within 100 yards of all educational institutions.
E-invoice will be mandatory for these companies
There is going to be a big change under the Goods and Services Tax (GST) Act from April 1, 2022. According to a report, now companies with a turnover of more than Rs 20 crore will also have to generate electronic invoice (E-Invoice) for B2B transactions. This information has been shared by the Central Board of Indirect Taxes and Customs (CBDT). Under the GST law, e-invoice was made mandatory for business-to-business (B2B) transactions from 1 October 2020 for companies with a turnover of more than Rs 500 crore, which will be subsequently increased to Rs 100 crore with effect from January 1, 2021. Implemented in companies with turnover of more than Rs.50 crore and then from April 1, 2021, companies with turnover of more than Rs.50 crore also started generating B to B invoice and now it is applicable for companies with turnover of Rs.20 crore also. He is going.
PF interest will be taxed
After the decision of the Modi government of the Center, now tax will have to be paid on the PF account of EPFO from April. This will apply the limit of maximum tax free contribution to GPF 5 lakhs. If the employee has made a deduction on this, then the interest income will be treated as income and will be taxed. It will also be mentioned in Form 16. Under this, interest of government employees deducting GPF above Rs 5 lakh will be taxed. The employee can deposit up to a maximum of ₹ 500000 in his Provident Fund account in 1 year.
Under this, existing PF accounts will be divided into taxable and non-taxable contribution accounts. A new section 9D has been inserted under IT rules to introduce new tax on PF income from employee contribution above ₹ 2.5 lakh per annum. Their closing account will also be included in the non-taxable accounts as the date is March 31, 2021. If there is a deposit of Rs 5 lakh in someone’s EPF account, then under the new rule, the amount deposited till 31 March 2021 will be deposited in the account without tax. After the implementation of this new rule, most of the PF subscribers will benefit from the limit of Rs 2.5 lakh. Small and middle class taxpayers will not be affected by the new rule. Those with big income will be affected.