TDS on Crypto, new credit card rules, double penalty on failing PAN-Aadhaar linking- 5 Changes coming from July

 

The month of July will bring with it several significant financial changes. These include higher PAN Aadhaar linking penalty, demat KYC deadline, new credit card rules, new NPS risk profiling, crypto TDS etc. Here is a look at five money changes coming into effect from July.

TDS on Crypto

On June 22, 2022, the Central Board of Direct Taxes (CBDT) published a circular outlining the tax deduction process for transfers of virtual digital assets (VDA) and cryptocurrencies. Beginning on July 1, 2022, new TDS regulations regarding VDA and crypto will be in place.

As per the new law, the purchaser of a virtual digital assets (VDA) is required to deduct 1% of the amount paid to the seller ( resident Indian) as income tax deducted at source (TDS). The tax is required to be deducted at the time of credit of amount or at the time of payment to the resident individual, whichever is earlier. The tax will be deducted only if the amount paid exceeds the specified limit, stated CBDT.

PAN- Aadhaar linking with fine

If someone links PAN with Aadhaar after from April 1, 2022 (before June 30, 2022), then the linkage will cost you Rs 500. And after July 1, 2022, linking PAN with Aadhaar will cost you Rs 1,000.

 

Demat KYC deadline

The deadline for making existing demat and trading accounts KYC-compliant is June 30, 2022.

 

A demat, trading account holder is required to update the following KYC attributes by June 30:
a) Name
b) Address
c) PAN
d) Valid mobile number
e) Valid email ID
f) Income range

All 6-KYC attributes are made mandatory for new accounts opened from June 1, 2021.

New credit card rules

Credit card billing rules: The RBI said, “In order to avoid repeated complaints about late invoicing, the card issuer may propose issuing bills and account statements via internet/mobile banking with the cardholder's informed authorization. Card issuers must implement a system to ensure that the cardholder receives the billing statement."

 

Credit card closure rules: Banks are required to honour credit card cancellation requests by getting in touch with the customer right away via email, SMS, or another channel.

Customers must have access to a variety of channels, including a helpline, a dedicated email address, Interactive Voice Response (IVR), a prominent link on the website, internet banking, a mobile app, or any other form, and they cannot be forced to use a particular method.

NPS risk profiling

According to a PFRDA circular, subscribers would be exposed to varying levels of risk when investing in different asset classes of pension fund schemes. As a result, it is hoped that adequate disclosure of the risks involved in different NPS schemes will be made available so that subscribers are aware of them.

These risk levels will aid in providing accurate information about the hazards involved with different NPS Schemes before participating in them. As of July 15, 2022, the new regulation will apply to all current schemes in categories E, C, G, and A.

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