Tax will have to be paid: From April 1, there will be a change in the rules of PF account, your pocket will be affected

The rule, which will come into effect from April 1, will have an impact on 1.23 lakh rich (high-income individuals). The government says that these people are earning an average of more than Rs 50 lakh in a year till now, on which no tax is levied. The new rule will put a stop to their earnings. Till now, there is no tax on interest earned on PF contribution.

Provident Fund (PF) rules are going to change from April 1, 2022. This will have a direct impact on your pocket. From the new financial year, if you invest more than Rs 2.50 lakh in the PF account, then tax will have to be paid on its interest. Finance Minister Nirmala Sitharaman had announced the imposition of tax on investments above Rs 2.50 lakh in PF in the Union Budget for 2021-22.

The Central Board of Direct Taxes (CBDT) has also issued a notification in this regard. Under this, if you contribute more than 2.50 lakh to your PF account in a year, then tax will have to be paid on the interest income earned on it. For government employees, this limit is Rs 5 lakh. Investment in PF account gets tax exemption under section 80C of the Income Tax Act.

Tax calculation will be easy
If the annual contribution of a salaried worker in the PF account is more than 2.50 lakhs, then two separate accounts will be created. 2.50 lakh will be deposited in the first PF account, while the amount above that will be deposited in the second account. This will make tax calculation easier.

There will be a ban on the income of the rich
The rule, which will come into effect from April 1, will have an impact on 1.23 lakh rich (high-income individuals). The government says that these people are earning an average of more than Rs 50 lakh in a year till now, on which no tax is levied. The new rule will put a stop to their earnings. Till now, there is no tax on interest earned on PF contribution.

GST: New e-invoicing system to be implemented

The government is constantly making changes in this system to increase GST collection and prevent tax evasion. There is a change in the e-invoice system from April 1. Companies with business-to-business (B2B) transactions with an annual turnover of more than Rs 200 crore will require e-invoicing.

On October 1, 2020, the government made it mandatory for companies with a turnover of up to 500 crores. It was reduced to 100 crores on January 1, 2021. From the new financial year, it was changed again and fixed the turnover up to 50 crores.

Post Office: Account opening required
If you have invested in small savings schemes of the post office, then its rules are being changed from April 1, 2022. Under the new rules, customers are now required to open a savings account or bank account to invest in Time Deposit Account, Senior Citizen Savings Scheme and Monthly Income Scheme (MIS).