NEW DELHI: The new financial year brings some bad news to taxpayers - both individuals and corporates. Apart from the most talked-about 30% capital gains tax on cryptocurrencies, the new financial year brings to an end the additional tax incentive for buyers in affordable housing projects.
Income from sale of virtual digital assets (cryptocurrencies) will now be taxable at 30% effective from today. Further, crypto investors would not be able to set-off losses in one crypto asset against the gains from another.
The tax incentive in the form of a deduction of an additional Rs 1.5 lakh to new home buyers will also come to an end from 1 April. The incentive was announced for interest paid by first-time home-buyers for loans taken for purchase of flats/houses with stamp value not exceeding Rs 45 lakh.
“The period of sanction of the loan was extended from 31 March 2020 to 31 March 2021, and finally 31 March 2022 in the subsequent Finance Bills. There is no extension now granted,” says Anita Basrur, Partner, Direct Tax, Sudit K Parekh & Co. LLP.
A TDS of 1% is applicable on transfer of immovable property above Rs 50 lakh. The TDS was deducted on the consideration paid. From 1 April, TDS of 1% will be deducted on consideration or stamp duty value, whichever is higher. The practice of businesses/taxpayers claiming health and education cess as deduction will no longer be allowed from 1 April 2022.