The new month has begun and starting July 1, there will be a host of financial changes. These will affect the common man’s pocket and the way he or she does financial planning. It should also be noted in this respect that July 1 also marks the start of the second quarter of the financial year, which means that certain changes in the tax rules will also apply from today. From the PAN-Aadhaar bond, to income tax rule changes, TDS on cryptocurrencies and the lower price of LPG cylinders, here are some of the currency rule changes from 1st July.
Here are five key changes to the financial rules effective July 1, 2022:
1. PAN-Aadhaar Linking Fine Augmentations
Starting today, you must pay a double penalty if you try to bind your PAN-Aadhaar. As per CBDT guidelines, those who will bind their PAN Aadhaar from July 1 to March 31 next year, they will have to pay a fine of Rs 1,000 instead of the fine of Rs 500 which was imposed till 30 June.
2. Change in credit card rules
Since July 1, the rules for issuing, closing and charging credit cards have changed. Under this, credit card companies cannot send unwanted credit cards to customers. Other than that, your credit card billing cycle can be chosen by you on a one-time basis. If the credit card is not closed at the request of the client within seven working days, the company will be liable to pay Rs 500 per day to the client until the time of closing.
3. Changes to income tax rules for doctors and influencers
Doctors, influencers and others who receive free items from companies will have to pay taxes to receive them starting July 1, the income tax department said. The Finance Act 2022 inserted a new section 194R into the Income Tax Act 1961, under which those in receipt of benefits will have to pay TDS at the rate of 10%.
4. TDS on cryptocurrencies
Those who invest in cryptocurrencies will be required to pay withholding tax (TDS) from July 1 on Friday. According to a circular issued by the CBDT on June 22, “The new section (Section 194S) mandates a person, who is required to pay to any resident any sum in consideration for the transfer of a virtual digital asset (VDA) , to deduct an amount equal to 1 per cent of this amount as income tax.
5. Reduction of the price of LPG cylinders
The price of commercial 19kg LPG cylinder has been reduced by Rs 198 in Delhi effective Friday July 1, public retailers said in a notification. In Kolkata, the price of LPG has been reduced by 182 in Kolkata, 190.50 in Mumbai and 187 rupees in Chennai. However, the price of a 14.2 kg household cooking cylinder remained unchanged.
6. Demat account deactivation
The deadline to complete your KYC for the demat account was June 30, after which the account will be deactivated. You need to update your KYC with details such as name, address, PAN, valid mobile number, income bracket and valid email id. If this is not done, from July 1, your demat account will be rendered invalid.
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