July 1 will bring a host of changes related to taxation, stock market, and late fee on PAN-Aadhaar linking. While the three major changes in the income tax rules proposed in the union budget 2022 will take effect from Friday, the central government has not given any confirmation on newly-introduced labour codes.
Here are the key changes expected to come into effect from July 1:
PAN-Aadhaar linking: According to the guidelines of Central Board of Direct Taxes (CBDT), if individuals fail to link their PAN with Aadhaar by June 30, they will have to pay a double fine of ₹1,000 from July 1. Those who failed to link their Permanent Account Number with Aadhaar by March 31, they had to pay ₹500 as penalty.
PAN-Aadhaar linking last date today. Here’s how to link it
TDS on crypto transactions: The Finance Act 2022 has introduced Section 194S in the I-T Act, which mandates levy of 1% tax deducted at source (TDS) on payments towards virtual digital assets or cryptocurrencies beyond ₹10,000 in a year. The threshold limit for TDS would be ₹50,000 a year for specified persons, which include individuals/HUFs who are required to get their accounts audited under the I-T Act.
Earlier this month, CBDT notified certain amendments in I-T Rules with respect to furnishing TDS returns in Form 26QE and Form 16E. It requires detailed disclosure for TDS deductions for VDAs, under which date of transfer and mode of payment will have to be specified.
Tagging of Demat account: Capital markets regulator Sebi recently announced that all demat accounts of stock brokers, which are untagged, need to be appropriately tagged by June 30. If any demat account is left untagged, credit of securities will not be allowed from July 1. Debit of securities will also not be allowed in any demat account from August if left untagged. In a circular issued on June 20, the Securities and Exchange Board of India said that stock brokers shall obtain permission from Stock Exchanges to allow tagging of such demat accounts from August 01, 2022 onwards.
Stock brokers are required to maintain demat accounts only under five categories – Proprietary account, Pool account, Client unpaid securities account, client securities margin pledge account, and Client securities under margin funding account.
TDS for doctors, influencers on gifts: Becoming an “influencer” or YouTuber has become a popular career choice for children, according to a 2019 poll. They often receive gifts from companies in lieu of promoting their products or services. However, they will have to pay taxes for those items from July 1. The social media influencers will be liable to pay 10% TDS if they receive a product like a car, mobile, outfit, etc, and retain the same. In case they return the product after using the services, it will not fall under Section 194R.