July 1 marks the beginning of the second quarter of the financial year as well, which means that there will be a host of rule changes relating to financial matters this month.
Financial Changes from July 1: The month of July is going to kick in soon, and this means there will be a host of changes that will affect your money matters. It must be also noted in this regard that July 1 marks the beginning of the second quarter of the financial year as well, which means that there will be a host of rule changes relating to financial matters this month. From credit card rules change, income tax rule change, to TDS on cryptocurrencies, a host of new financial rules in July are about to set in.
HERE ARE FIVE KEY FINANCIAL RULE CHANGES FROM JULY 1, 2022:
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Credit Card Rules Change
From July 1, rules related to credit card closure, billing cycle and others are set to go through a change. The RBI has notified these rules under the Reserve Bank of India (Credit Card and Debit Card – Issuance and Conduct), whereby credit card companies cannot send unwanted credit cards to customers. Apart from this, your credit card billing cycle will begin on the 11th day of the previous month and end on the 10th day of the current month, the RBI guideline has mentioned. If the credit card is not closed per request of the customer within seven working days, the company will be liable to pay Rs 500 daily to the customer till the time it is closed.
PAN-Aadhaar Linking Fine to Increase
Those who have not yet linked their PAN Aadhaar will have to pay a fine of Rs 1,000 if they try to link both the documents from July 1. Till June 30, the fine has been capped at Rs 500. The Central Board of Direct Taxes has extended the deadline to link PAN-Aadhaar to March 23, but people will have to pay a fine of Rs 1,000 if it is done on or after July 1.
TDS on Cryptocurrencies
The Central Board of Direct Taxes (CBDT) has issued detailed guidelines on the levy of tax deducted at source (TDS) on virtual digital assets (VDA) or crypto assets. The new rules will be effective from July 1. Finance minister Nirmala Sitharaman has introduced the provision of tax deducted at source at 1 per cent levied on payments made on transfer of virtual assets.
“The new section (Section 194S) mandates a person, who is responsible for paying to any resident any sum by way of consideration for transfer of a virtual digital asset (VDA), to deduct an amount equal to 1 per cent of such sum as income tax thereon. The tax deduction is required to be made at the time of credit of such sum to the account of the resident or at the time of payment, whichever is earlier,” the CBDT said in a notification.
Income Tax Rule Change for Doctors, Influencers
Doctors, influencers and other such people who receive free items from companies will have to pay taxes for receiving them from July 1, the Income Tax department has declared. Finance Act 2022 inserted a new section 194R in the Income-tax Act, 1961, as per which, those who receive benefits will have to pay TDS at the rate of 10 per cent.
Demat KYC Rule Change
The deadline to carry out your KYC for demat account is June 30, following which the account will be deactivated. You have to update your KYC with details like name, address, PAN, valid mobile number, income range and valid email ID. If this is not done, from Juky 1 your demat account will be rendered invalid.
