After the start of the second quarter of the financial year 2022-23, three major changes in the income tax rules proposed in the Union Budget 2022 have come into effect from today. In which a rule has also been included for doubling the late fee on PAN-Aadhaar linking. From today, the late fee for PAN-Aadhaar seeding has been increased from Rs 500 to Rs 1,000.
In addition, one percent tax deduction at source (TDS) on all cryptocurrency transactions from Q2FY23 will be applicable from today. Meanwhile, from today 10 per cent TDS on monetary benefits received through sales promotion on social media influencers and doctors has also come into effect.
3 important changes in income tax rules will be implemented from today.
Double fee for PAN-Aadhaar linking
The last date for Aadhaar-PAN linking has ended on 30 June 20222. As per CBDT guidelines, if a person links his PAN with Aadhaar after 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. Now that we have reached the second quarter of FY 22-23, therefore, an individual has to pay Rs 1,000 for PAN-Aadhaar seeding.
TDS on cryptocurrency
After levying 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. The budget proposal has become effective from today. However, an investor will be able to claim refund of TDS levied on loss transactions. Hence, cryptocurrency investors are advised to file ITR.
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 from 1st July 2022 i.e. today. However, TDS will be applicable only if the cost of profit is ₹20,000 or more in a financial year.
Know what is section 194R
Tax to be deducted before grant of profit or perquisite to any person. There may be several stages in the grant of benefits/perks to the resident recipient. There cannot be a single rule to determine the stage at which tax will be deducted. It has to be understood with reference to the special benefit or perquisites to be provided to the recipient. Before reaching the point of ‘providing’ the benefit or perquisite, it has to be ensured that the tax has been deducted.
How does section 194 work?
If a private doctor is receiving samples from a pharmaceutical company and the cost of all such samples exceeds Rs 20,000 in a financial year, it will attract 10 per cent TDS. However, if the doctor is working in a private hospital, in that case 10 percent TDS will be levied on the hospital. It is important to know that section 194R does not apply to government entities. Therefore, if a doctor working in a government hospital is receiving free medical samples, he is not required to pay 10 per cent TDS.
though not a tax payer due to less income,,, the information is useful to guide many to avoid tax implications to future assessies
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