Income tax rules: Here are the modifications in rules from July 1, 2022 – Checkout Now

While the late fees for linking PAN-Aadhaar will be charged, doctors and influencers must pay 10% TDS on their sales promotions’ benefits.

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Income tax rules change from July 1, 2022

In the Union Budget 2022, the government presented three major changes in the income tax rules. They are now set to come into existence on July 1, 2022. While the late fee for linking PAN-Aadhaar will hit up, doctors and influencers must pay 10% TDS on their sales publicity benefits.

TDS on cryptocurrencies

TDS of 1 percent will be charged on payments towards virtual digital assets or cryptocurrencies beyond Rs 10,000 from July 1. The Finance Act 2022 introduced Section 194S in the income tax (I-T) Act, which provided 1 percent TDS.

income tax rules change on cryptocurrencies

The income tax department said both customer and dealer would have to withhold taxes for transactions involving an exchange of one virtual digital asset (VDA) for another. The Central Board of Direct Taxes (CBDT) also said that according to section 194S of the I-T Act, the buyer would have to deduct tax in a peer-to-peer transaction of VDA.

“Thus, in a peer-to-peer (i.e., buyer to the seller without going through an Exchange) transaction, the buyer (i.e., the person paying the consideration) is required to deduct tax under section 194S of the Act,” the CBDT said. For example, the CBDT said that in a situation where VDA “A” is being exchanged with another VDA “B,” both the persons are a buyer and a seller. One is the buyer for “A” and seller for “B,” and another is the buyer for “B” and seller for “A.”

Influencers, music bands, and doctors liable to 10% TDS

TDS of 10 percent must be deducted by any person who provides benefits or perquisites exceeding Rs 20,000 in a year to a resident, arising from the latter’s business or profession. Doctors and influencers will have to be mindful of the benefits they receive.

Double fee for PAN-Aadhaar linking

The last date for Aadhaar-PAN linking is June 30, 2022. According to the CBDT guidelines, those who link their PAN with Aadhaar between March 31, 2022, and June 30, 2022, will have to pay a late fee of Rs 500. However, people who fail to link PAN with Aadhaar by June 30, 2022, will have to pay Rs 1,000 as a fine whenever they link their PAN-Aadhaar.

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