What are The Income Tax Rules Changes from July 1, 2022

The rules are changed from time to time by the government in the context of changing economic conditions, accurate monitoring system and new tax reforms, future requirements.  Some income tax rules have also been changed by the Government of India from July 1, 2022.  Which is linked to the general public and the digital economy of the future.  Everyone should be aware of these changes.  Let us know about these new rules of change related to income tax.

Also read, A Complete Analysis of Section 194R of Income Tax.

Contents included in the blog:

 1. Three main changes were announced in the budget

 2. If you have not been able to link PAN-Aadhaar, till now you will have to pay double the fine

 3. Now one percent TDS will have to be paid on crypto currency transactions

 4. TDS of 10% on benefits of doctors and social media influencers

 5. Conclusion

 6. FAQs

1. Three main changes were announced in the budget:

Significantly, in the Budget 2022-23, Union Finance Minister Nirmala Sitharaman had announced about three main new rules to be implemented from July 1, 2022.  Now three new main rules related to income tax have come into existence from 1st July, 2022.  In which the first rule is related to the linking of Aadhaar and PAN, which is directly related to the general public of the country, while the second rule is related to crypto currency, which will affect those investing in crypto currency.  The third new rule is related to TDS, which pertains to doctors and social media influencers.

To know the Penalty for Late Filing TDS Return. 👈 Click here

2. If you have not been able to link PAN Aadhar, till now you will have to pay double the fine:

According to the instructions of the government, by June 30, 2022, all people had to get PAN linked with Aadhaar.  Earlier, where the fine was Rs 500 till June 30, 2022.  Now from July 1, 2022, the penalty for linking PAN with Aadhaar will be Rs 1000.

3. Now one percent TDS will also have to be paid on crypto currency transactions:

Earlier, the Government of India had implemented the rule of 30 percent income tax on transactions on crypto currency from 1 April, 2022.  But now from July 1, 2022, the government has implemented the rule of one percent additional TDS on the transaction of cryptocurrency.  That is, where there will be a transaction, TDS will also have to be deducted.

TDS of 1 per cent will be deducted from July 1, 2022 on payment of more than Rs 10,000 for crypto currency in a year.  But it has to be kept in mind that TDS will be deducted for all, whether profit or loss, for those transacting in crypto.  It is a different fact that those who will suffer loss in crypto currency transaction can claim for refund.  But for this refund, cryptocurrency traders will have to file an income tax return. 

Also, if the buyer does not have PAN at the time of transfer of cryptocurrency, tax at the rate of 20 per cent will have to be paid.  If the buyer has not filed income tax return, then TDS at the rate of 5 per cent will have to be paid.  Through TDS on crypto currency, the government is trying to monitor the transactions in crypto currency.

Also looking for taxation on crypto currency? Click here 👉 Taxation on Cryptocurrency in India.

4. 10% TDS on benefits of doctors and social media influencers:

This rule is the most recent of the amended rules related to income tax which started from July 1, 2022.  According to this rule, TDS of 10 percent will have to be paid on the benefits received by doctors and social media influencers.  But it is worth noting that this rule will be applicable only to those doctors and influencers whose profit in a year is more than Rs 20,000.  Also, with effect from July 1, 2022, 10 per cent TDS will be deducted from doctors and social media influencers on receiving gifts through business.  That is, doctors will also have to pay TDS on gifts received from pharmaceutical companies and medical representatives.

Conclusion:

The government is considering the linking of Aadhaar and PAN as a mandatory fact to keep the identity of the taxpayers accurate. Its really important to Know The Consequences of Not Linking a PAN Card with An Aadhaar Card.  At the same time, the government also wishes to have a watchful monitoring of cryptocurrency.  That's why the government is bringing TDS system on trading of cryptocurrencies.  The government is also trying to monitor the earnings of doctors and social media influencers.  Therefore, TDS system was imposed on them too.  It is better that the general public should be aware of the new changes especially regarding income tax. 

The government needs resources for the operation of public welfare schemes, while economic monitoring is also the need of the hour.  So the government brings new new rules with time.  Citizens should understand those new rules and ensure the payment of taxes on time.

FAQs

 1. Ques - What is TDS?

TDS means tax is deducted at source. That is, tax is deducted at the place of earning itself and deposited with the government in the name of the earner. To learn more about the TDS or you want to know the procedure, how to file TDS return online join Income Tax Certification Course.

 2. Ques- Why is the government promoting the TDS system?

The government is trying to increase the scope of its monitoring by increasing the TDS system.  in order to discourage the attempts of tax evasion.

Section 80C is considered the popular section among the taxpayers as it can reduce taxable income with the help of tax-saving investments. click here to know the Deductions under Income Tax .

3. Ques- Why is the government showing so much commitment towards linking Aadhaar and PAN?

The government is trying to keep a close watch on the personal identity of the citizens and the status of tax payment by them so that adequate resources for public welfare schemes can be obtained from revenue income.

4. What is Crypto Currency?

Cryptocurrency is a type of digital currency, which is managed by a decentralized system.  In this, every transaction is verified by digital signature and its record is kept with the help of cryptography.

 5. Why is the government bringing TDS system even on cryptocurrency transactions?

 India's economy is going digital.  In the future, the business of cryptocurrency is going to increase in India as well.  The government is also bringing it under the purview of TDS system to monitor the business of cryptocurrency.

6. What is the government's objective to introduce TDS system on Social Media Influencers and Doctors?

Earnings of Social Media Influencers is a new fact whose data is not systematically with the government.  For accurate monitoring of the earnings of doctors and social media influencers, the government is bringing them under the TDS system.

7. What means of social media influencer?

Influencers in social media are people who have built a reputation for their knowledge and expertise on a specific topic. They make regular posts about that topic on their preferred social media channels and generate large followings of enthusiastic, engaged people who pay close attention to their views. Brands love social media influencers because they can create trends and encourage their followers to buy products they promote.

Also read, Section 194Q – Tax deduction on the purchase of goods and FAQs.