New Delhi: Several changes introduced in the Union Budget for 2022-23 will get implemented from Friday impacting our financial lives. Apart from the Budget announcement, there are other changes that will have a bearing on prices of goods across the country from April.
Some of the things to become dearer from this month include luxury cars, medicines apart from new tax rule on interest on Provident Fund, changes in home loan scheme and more.
Here’s a lowdown of things to become costlier from April onwards
Medicines to get costlier
Get ready to pay more for drugs such as Crocin and other medicines as the National Pharmaceutical Pricing Authority (NPPA) has announced a hike in prices of over 800 essential drugs from April.
NPPA has allowed the prices of scheduled drugs that are under price control to be hiked by 10.7 per cent. The hike will impact prices of over 800 medicines, many of which are used to treat fever, infections, heart diseases, high blood pressure, skin diseases and anaemia. This includes drugs like Paracetamol, Phenobarbitone, Phenytoin Sodium, Azithromycin, Ciprofloxacin Hydrochloride and Metronidazole, according to the Indian Express report.
The hike will also impact prices of contraceptives like copper IUDs, condoms, insulin injections, Vitamin C tablets, and multivitamin tablets.
Luxury cars set to become expensive
Luxury carmakers such as Mercedes Benz and Audi, have announced the prices of their vehicles will go up from April 1. All carmakers have cited rising input costs as the major reason behind the hike. Several other brands had upped their price in January.
Other luxury car companies may also raise their prices.
Other items to become expensive
As per the Union Budget, things that were to get more expensive include headphones and earphones, imitation jewellery, X-ray machines, solar cells, etc.
Senior citizens aged 75 years & above exempted from filing ITR
Starting April, senior citizens aged 75 years and above are exempted from filing income tax returns (ITR). However, this exemption from filing ITR is available provided certain conditions are fulfilled by the senior citizens. Further, a declaration has to be given by the senior citizen to the bank.
Get ready to pay crypto tax
All crypto gains from various virtual digital assets will now be taxed at a flat rate of 30 per cent. This includes gifts in the form of cryptocurrency as well. Further, the government has introduced norms by disallowing losses incurred in one virtual digital asset to be set off against an earning in another.
Tax on EPF account
The interest earned on the provident fund balance will no longer be exempted from tax. The new PF rule will kick in amid Employees Provident Fund Organisation (EPFO) announcing 8.1 per cent interest rate on employee provident fund (EPF) accumulations in members’ accounts for the 2021-22 fiscal, down from 8.5 per cent in the previous year.
This comes as another blow to PF subcribers because interest accrued on EPF contribution beyond a particular threshold will be taxable, according to the announcement in 2021 Budget
Earlier, interest on EPF was totally tax-free prior to Budget 2021. Finance minister Nirmala Sitharaman has proposed that PF payments of more beyond Rs 2.5 lakh per year be taxed.
Removal of benefit under section 80EEA
There was an additional deduction on home loan interest upto Rs1.5 Lakh on house properties valued less than Rs 45 Lakh for first time home buyers. The scheme has not been extended beyond 31st March 2022. Therefore, this additional deduction of Rs 1.5 Lakh won’t be available to taxpayers from this month.
Interest in Post Office Savings Schemes to be credited in bank account
Those who are investing in Post Office Monthly Income Schemes and term deposits, make sure to link your post office savings account to your bank account. Coming April, the interest on Post Office monthly income scheme, senior citizen saving scheme or term deposit will not be given in cash but rather in the savings accounts.
In view of this, the department of Post has asked that account holders should link their post office savings account with these accounts to avoid any discrepancy in interest credit.
Mutual fund transaction
Investment in mutual funds will not be paid by cheque, bank draft, or any other physical means from April. Now the user will only get the facility of UPI or net banking.