1st July 2022 was a significant day for the taxpayers as some new important changes have been made in the Income Tax Act, 1961 which may affect the taxpayer’s life significantly.
Non-linking of PAN-Aadhaar
The taxpayers who did not link their PAN Card with the Aadhaar may face a penalty of Rs. 1000from 1st July. Earlier, till June 30, the charge was Rs. 500. So when an individual links their PAN and Aadhaar, they first have to pay the penalty and request to link PAN aadhaar once the payment reflects in the e-filing site.
TDS on Virtual Digital Assets
Earlier this year, Finance Minister Nirmala Sitharaman while presenting the Union Budget 2022, proposed a 1% tax deducted at source (TDS) on any payment made in exchange for the transfer of virtual digital assets (VDAs), mainly on cryptocurrency. For transactions totaling more than Rs 10,000, the TDS rule will go into effect on Friday, July 1. However, the Central Board of Direct Taxes (CBDT) has yesterday clarified that this provision shall not be applicable to non-fungible tokens (NFTs).
The tax at the time of transfer of VDA will be deducted at the rate of 20% if the deductee (buyer’s) PAN is not readily available. Additionally, if the payer is not one of the specified people, TDS will be withheld at a higher rate of 5% (as opposed to the usual rate of 1%) if the individual has not submitted his or her income tax return.
TDS on Perquisites TDS rule for doctors, social media influencers Doctors and social media influencers will be subject to 10 percent tax Deducted at Source (TDS) beginning July 1, 2022, on benefits received from companies for sales promotion. The provider of the benefit or perquisite may directly deduct the tax under Section 194R of the Income Tax Act, 1961, according to a notification from the Central Board of Direct Taxes (CBDT), although the taxpayer must verify the recipient’s possession of any taxable amounts.
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