The government of India and other significant organisations such as the Reserve Bank of India has announced a set of new rules applicable in July 2022 to the linkage of Pan Card to Aadhar Card, Income Tax, TDS and Credit Card. These new rules are bound to bring changes to the current framework of society. Here, we have explained all the new rules in detail.
Pan and Aadhar Card Linkage New Rules:
The income tax department of India had made it mandatory for people to link their aadhar to the pan card. However, a few people failed to complete the necessary requirement before the original last date of 31st March 2022. It was announced that those people would be able to link their pan with aadhar with a late payment fee of ₹500 until 30th June 2022. Now, the late fee payment has doubled in July 2022. From now on, those who will link their aadhar card and pan card would have to pay ₹1,000.
Income Tax and TDS New Rules:
Starting from July, doctors, social media influencers and musical bands would have to pay a 10% TDS on the gifts or benefits they would receive from their fans or other entities for free. However, if the amount of received gifts and benefits does not exceed more than ₹20,000 in the complete year, then they would be exempted from the TDS requirement.
Moreover, a TDS of 1% on transactions made for digital cryptocurrencies will also be applicable starting from 1st July. The buyer and seller will have to pay 1% each as TDS when involved in a digital cryptocurrency transaction. However, if the transactions of a buyer or seller do not cross the 10,000 Rs mark, then they would not have to pay any TDS at all.
New Credit Card Rules:
The Reserve Bank of India has made it mandatory for commercial banks to deliver the credit bill report on time to credit card holders. There were many complaints that stated that the banks had been sending the billing statement after the interests had already started to apply on credit. With this new rule, this banking practice will now be completely abolished.
New Rules for Online Transactions:
Reserve Bank of India has come up with an effective strategy to reduce the cases of fraud in India. Starting from July, online retailers cannot use the cards of people directly to make payments on their gateway. Instead, a token would be used to make payments. The card details of people would be converted into a token which will be ultimately used to make payments on a particular platform.