After ushering in Q2FY22, a good number of banking, financial and income tax rules will change today. From July 1, 2022, PAN-Aadhaar linking would now require a late fee of ₹1,000 instead of ₹500 and there will be an additional 1 per cent TDS levied on all digital asset transactions. To ensure the security of credit card and debit card data, the Reserve Bank of India has introduced tokenisation of card transactions today. Meanwhile, the central government has decreased commercial LPG gas cylinders by ₹198 per cylinder from July 1, 2022.
Double penalty for not linking PAN with Aadhaar from today
The Income Tax Department has said that non-linking PAN with Aadhaar by March 31 would attract a penalty of up to Rs 1,000, but such PAN will remain functional for one more year until March 2023, for filing ITR, claiming refunds and other I-T procedures. The bad news is that those taxpayers who link their PAN Card with biometric Aadhaar by June 30, 2022, would be required to pay late fees of Rs 500. Beyond that, the penalty would rise to Rs 1,000.
TDS on virtual digital assets
The income tax department has said the 1 per cent TDS on the transfer of virtual digital assets would be levied on net transaction value and the onus of deducting the tax would primarily be on the exchanges. The Central Board of Direct Taxes (CBDT) issued an FAQ on the TDS provisions on virtual digital assets (VDA) or cryptocurrencies, which was introduced in the 2022-23 Budget and will be effective from July 1.
New credit card, debit card rules
In a bid to ensure the security of credit, and debit card data, the Reserve Bank of India (RBI) will implement tokenisation of card transactions from July 1, 2022. RBI last year enhanced the scope of tokenisation and permitted card issuers to act as token service providers (TSP).
New TDS rule to impact doctors, social media influencers
The income tax department recently issued guidelines on the applicability of new TDS provisions regarding benefits received in a business or profession and said that such perquisites can either be in cash or in-kind or partly in both of these forms. The new provision comes into effect from July 1.
LPG Cylinder price reduction
The prices of 19 kg commercial LPG cylinders have been decreased by almost Rs 200. From today, the 19 kg commercial cylinder will be cheaper by Rs 198 per bottle. The price of a 19 kg commercial cylinder will now be Rs 2021 as against the earlier price of Rs 2,219 per bottle in Delhi, while in Kolkata it will be priced at Rs 2140 instead of Rs 2,322 in Kolkata, Rs 1981 instead of Rs 2,171.50 in Mumbai and Rs 2186 instead of Rs 2,373 in Chennai.