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Latest changes in income tax rules including cash deposit. read here

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Latest Changes in Income Tax Rules that you need to know

Three major changes in the income tax rules proposed in the Union Budget 2022 have come into effect from July 1. Every taxpayer should be aware of these latest updates.

The three significant changes pertain to Aadhaar-PAN linking, crypto investments, and benefits enjoyed by social media influencers and doctors.

As per changes in income tax rules, late fee for Aadhaar-PAN linking has been increased, and social media influencers as well as doctors will have to pay an additional 10 per cent TDS on benefits received from sales promotion. Cryptocurrency investments will also be subject to 1 per cent TDS.

The government has put several limits on cash transactions to tackle black money. Learn about cash transactions that can invite serious penalties.

Let’s take a look at these changes in detail.

PAN-Aadhaar Linking Late Fee:

The last date for linking Aadhaar-PAN was June 30. According to the Central Board of Direct Taxes (CBDT), those who fail to link Aadhaar with PAN will now have to pay a fine of Rs 1,000.

The increased late fee has come into effect from July 1. Earlier, the CBDT had allowed linking of Aadhaar and PAN between March 31 and June 30 with a late fee of Rs 500.

TDS on Cryptocurrency:

Investments in Virtual Digital Assets (VDA) of more than Rs 10,000, including cryptocurrencies, will attract tax deduction of 1 per cent at source (TDS) with effect from July 1. St. TDS on crypto investments.

The 1 per cent TDS will be in addition to the flat 30 per cent tax on cryptocurrency transactions, as proposed in the Union Budget.

TDS will also be applicable on NFT transactions above Rs 10,000. Section 47A of the IT Act defines VDA as any information, code, number or token, other than Indian or any other foreign currency, which is generated by cryptographic or other means.

However, refund for TDS can be claimed on loss transactions. Hence, experts advise you to report your cryptocurrency investments in your ITR filing.

Tax on benefits received by doctors and affected:

As proposed in the Union Budget, Section 194R has been inserted in the IT Act, 1961. In the Union Budget 2022, the government included a new section 194R in the Income Tax Act 1961.

As per the new clause, 10 per cent TDS will be levied on profits received from sales promotions by doctors and social media influencers. TDS will be applicable for profit above Rs 20,000 in a financial year.

Doctors receiving samples from drug manufacturers will have to pay 10 per cent TDS if the total amount exceeds Rs 20,000 in a financial year.

However, this will not apply to doctors working in government jobs.

Other changes: For cash deposits above ₹20 lakh in a year, rules change

Cash transactions have traditionally played an important role in the Indian economy and are a constant cause of accumulation of black money, hence the government has set various limits.

Deadline for filing IT Returns:

The deadline for filing income tax returns is July 30 and is unlikely to be extended.

Every person, whose annual income exceeds the exemption limit, has to pay tax. Income Tax (IT) is levied on a slab basis, which means that the rates vary according to the level of income. The tax rate changes as income increases.

Read also:

How to file Income Tax Return without Form 16

These individuals have to compulsorily file income tax returns. read the description

Why should you file income tax return on time? 5 Important Reasons

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