The Union Government’s three newly proposed income tax rules in the Union Budget 2022 came into effect in July, the second quarter (Q2) of the financial year 2022-23 (FY23). Now, a late fee for PAN-Aadhaar linking has been increased from Rs 500 to Rs 1,000.
Notably, a one percent tax deduction at source (TDS) on all cryptocurrency transactions from Q2 FY23 will be applicable from today. From today 10 per cent TDS on monetary benefits received through sales promotion on social media influencers and doctors has also come into effect.
What are the new three changes?
Double Fee For PAN-Aadhaar Linking
As per the Central Board of Direct Taxes (CBDT) guidelines, if a person links his PAN with Aadhaar from 31 March 2022 to 30 June 2022, he will have to pay a late fee of ₹ 500. However, if a person fails to link PAN with Aadhaar by June 30, 2022, he will have to pay double the penalty of ₹ 1,000 for PAN-Aadhaar seeding from July 1, 2022.
TDS On Cryptocurrency
After levying a 30 per cent flat income tax on cryptocurrencies with effect from 1st April 2022, the Government of India in the Union Budget 2022 had proposed an additional TDS of 1 per cent on cryptocurrency transactions, irrespective of profit or loss to the investor.
Changes In Income Tax Rules For Doctors
In the Union Budget 2022, the Government of India has added a new section 194R to the Income Tax Act 1961. This new section proposes 10 per cent TDS on doctors and social media influencers on profits received through sales promotion. This budget proposal has come into force on 1st July 2022. However, TDS will be applicable only if the cost of profit is ₹20,000 or more in a financial year.
Read More: Gujarat CGST Is Still Not Through With Scrutiny Of FY’18 GST Filings. Here’s Why.
