New Delhi: Several changes introduced in the Union Budget for 2022-23 will impact our financial lives from Friday. Apart from the announcement of the budget, there are other changes which will affect the prices of goods across the country from April.
Some of the things to become costlier from this month include luxury cars, medicines besides new tax rules on interest on provident fund, changes in home loan scheme and much more.
Here’s a Rundown of Things That Are Getting Expensive From April
drugs will be expensive
Get ready to pay more for drugs like Crocin and other drugs as the National Pharmaceutical Pricing Authority (NPPA) has announced a price hike of over 800 essential drugs from April.
The NPPA has allowed 10.7 per cent hike in the prices of scheduled drugs which are subject to price control. The hike will impact the prices of more than 800 drugs, many of which are used to treat fever, infections, heart disease, high blood pressure, skin diseases and anemia. According to the Indian Express report, this includes drugs like Paracetamol, Phenobarbitone, Phenytoin Sodium, Azithromycin, Ciprofloxacin Hydrochloride and Metronidazole.
The hike will also impact the prices of contraceptives such as copper IUDs, condoms, insulin injections, vitamin C tablets and multivitamin tablets.
Luxury cars ready to be expensive
Luxury car makers like Mercedes-Benz and Audi have announced that the prices of their vehicles will increase from April 1. Several other brands had hiked prices in January.
Other luxury car companies can also increase their prices.
Other items will be expensive
According to the Union Budget, the things that were to be more expensive include headphones and earphones, imitation jewellery, X-ray machines, solar cells etc.
Exemption for senior citizens aged 75 years and above from filing ITR filing
From April, senior citizens aged 75 years and above have been exempted from filing Income Tax Return (ITR). However, this exemption is available from filing ITR provided certain conditions are fulfilled by the senior citizens. In addition, 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 the same rate of 30 percent. This also includes gifts in the form of cryptocurrencies. In addition, the government has introduced norms allowing losses in one virtual digital asset to be adjusted against earnings in another.
tax on epf account
Interest earned on provident fund balance will no longer be exempt from tax. The new PF rule will kick in amid the announcement by the Employees’ Provident Fund Organization (EPFO) of 8.1 per cent interest rate on Employees’ Provident Fund (EPF) accumulation in members’ accounts for the financial year 2021-22, as against 8.5 per cent in the previous year.
This comes as another blow to PF subscribers as interest earned on EPF contribution above a specific limit will be taxable as announced in the Budget for 2021.
Earlier, interest on EPF was completely tax-free before Budget 2021. Finance Minister Nirmala Sitharaman has proposed that PF payments above Rs 2.5 lakh per annum be taxed.
Removal of benefits under section 80EEA
For first time home buyers, an additional deduction was made on home loan interest of up to Rs 1.5 lakh on home properties valued below Rs 45 lakh. This scheme has not been extended beyond 31 March 2022. Hence this additional deduction of Rs 1.5 lakh will not be available to the taxpayers from this month.
Interest in post office savings schemes will be credited to the bank account
Those who are investing in post office monthly income schemes and fixed deposits, make sure to link their post office savings account with their bank account. In the coming April, interest on Post Office Monthly Income Scheme, Senior Citizen Savings Scheme or Fixed Deposit will not be given in cash but in savings accounts.
In view of this, the Department of Posts has said that the account holders should link their post office savings account with these accounts to avoid any discrepancy in interest credit.
mutual fund transactions
Investments in mutual funds will not be paid through cheque, bank draft or any other physical medium from April. Now the user will get the facility of UPI or net banking only.