TomorrowMakers

7 significant changes are coming to the financial market with many pros and cons for the average citizen. It includes increased penalties, taxes and price bump to account for the inflation.

New ITR rules

Changes Coming to Effect on July 1st

1. Online Payment applies the token system

The data collected from online shopping companies, payment getaways, and credit and debits card companies will no longer be available on the customer's platform. The Reserve Bank of India, also known as RBI, has introduced the token system. This system secures financial transactions with the card details being converted to tokens.

2. Failing in linking PAN – Aadhaar leads to double penalties

Until March 31st 2023, people can link their PAN and Aadhaar Cards with fines. Until June 30th 2022, the fine for not linking the PAN card to the Aadhaar Card was 500 rupees. However, since July 1st, the fine has been increased to 1000 rupees. 

3. Gifts require a 10% TDS

Businesses and diversified businesses from social media and influencers now require a 10% TDS. Also, for marketing purposes, the products given to influencers must be paid a TDS. However, no TDS would be applicable if the product is returned to the company.

Also Read: Important things to remember about the TDS

4. Cryptocurrencies also require TDS

According to the latest changes, if a transaction is made via cryptocurrencies consisting of more than 10000 rupees, the tax charged would be 1%. This change takes all cryptocurrencies and non-fungible tokens under its hold.

5. The KYC of Demat accounts in non-updatable

The government has taken extreme action through which all people who haven't updated their KYC in their Demat accounts won't be able to do so from now. June 30th, 2022, was the last date to update the KYC.

To learn more about KYC – New Aadhaar Card Features

6. Two-wheelers are more expensive now than before

July 1st 2022, marks the day when the price of two-wheelers increases substantially. The inflation and hiking of raw material prices have also led to the vehicles costing as much as 3000 rupees. This has led to many companies increasing the prices of their two-wheelers by a significant amount which has caused problems with affordability. 

7. Increase in the prices of air conditioners

Two-wheelers aren't the only things whose prices have increased, with the air conditioners also getting costly since July 1st 2022. This is mainly due to the change in the air conditioners' energy ratings, which decreases the air conditioners' ratings. This led to a 10% increase in the price of these commodities.

Changes in Income Tax Rules From July 1st 2022

With the changing landscape of the financial market and payment systems, the Indian government has put forth various changes to tackle these changes to balance out the problems and provide better outcomes for the general customer and citizens.