Implementing the new labor code with the introduction of a 4-day work week; the Government of India has introduced some necessary changes including charging TDS on Crypto, changes in credit card rules and charging a penalty at the inability of not linking the PAN card with the Aadhaar card.
Source:india.com
Here’s a look at the changes for the month of July:
TDS on cryptocurrency and Virtual Digital Assets:
In accordance with the Union Budget, 2022, the Center has published a circular with details of tax deduction on transfers of VDA and crypto from July 1, 2022.
As of now, the buyer will need to deduct 1% of the amount paid to the seller aa TDS (Income tax deducted at source).
The tax will be deducted when the amount is credited in the account or at the time of payment, whichever is earlier.
The Central Board of Direct Taxes has clarified that the amount will only be deducted if the payable amount is more than Rs. 10,000. The maximum limit for a specified person in a year is Rs. 50,000.
New Credit Card Rules:
The Reserve Bank of India has come to the decision that the card issue may propose issuing bills and account statements through the internet/mobile with the cardholder’s informed authorisation due to repetitive complaints about late invoicing.
The card issuer must make sure that the card holder received the billed statement on time.Â
Moreover, banks are required to honor credit card cancellation requests by getting in touch by the card holder.
Demat KYC Deadline:
 The deadline for making the demat and trading accounts KYC compliant is June 30, 2022.
The information needed for such compliance includes, the name of the customer, the address of the customer, the PAN card number of the customer, a valid contact number and email address, with complete information about his/her income.
Unlinked PAN-Aadhaar to be fined:
Anyone whose PAN card is not linked with the Aadhaar from July 1, 2022 will have to pay a penalty amount of Rs. 1000.
What is further critical is that, those who do not link their PAN with the Aadhaar card by 2024 will lose the validity of their PAN card making financial transactions difficult.
New Labor Code:
Though no official statements have been made as of today, yet as per the new labor code the number of working days might reduce to four days in a week but the working hours will substantially rise.
The salaried employees can face a vital change as per the code which aims to increase the Provident Fund contribution.
As per the new rules, the basic salary of the employee must be 50 % of their gross monthly salary leading to an increase in the PF contribution made by both employees and employers.
Small Savings Scheme Interest Rates:
Though the government decided to keep the interest rates on government backed instruments unchanged for the financial year 2024, this might change.
Though the rate of interest on small saving schemes for the first quarter of financial year 2022-2024 commencing from April 1, 2022 and ending on June 30, 2022 was unchanged , however, new rates might be introduced from July 1st to increase investment in PPF, Sukanya Samriddhi Yojana and NSC.
Such changes might take a heavy toll on salaried employees but their real-time impact will be seen with their implementation.
