You may have come across the news that you will have to pay a 2 per cent tax deduction at source (TDS) on annual cash withdrawals of over Rs 1 crore from September 1. However, that is not the only rule change the government has made.
Several other changes with financial implications have been implemented from September 1. Here's a list of all the new rules.
2 per cent TDS on cash withdrawals of over Rs 1 crore
On 30th August, the revenue department said a 2 per cent TDS will be levied on cash withdrawals of over Rs 1 crore in a financial year.
The Central Board of Direct Taxes (CBDT) further said that if a person has already withdrawn Rs 1 crore or more in cash up to August 31, 2019, in the current fiscal, the two per cent TDS shall apply on all subsequent cash withdrawals. (CLICK HERE TO READ MORE)
TDS deducted on payments made by any individual or HUF to professionals or contractors
When an individual or Hindu Undivided Family (HUF) pays any sum to a contractor or a professional or commission or brokerage of more than Rs 50 lakh in a financial year, they will have to deduct TDS at the time of payment.
Booking e-tickets through IRCTC will be costlier now
E-tickets booked through IRCTC will now cost more as the Indian Railways has decided to levy a service charge of Rs 15 per ticket for non-AC bookings and Rs 30 for AC class bookings. However, GST is not included in this service charge. You will have to pay that separately. (CLICK HERE TO READ MORE)
SBI's home and auto loans will be repo-linked
SBI said it is passing on the 25 basis points, or 0.25 per cent, cut in repo rate by the RBI on Thursday in its entirety to the cash credit/overdraft customers with limits above Rs 1 lakh, making the effective Repo-Linked Lending Rate 8 per cent.
“The benefit of reduction in the repo rate by 25 bps has been passed in its entirety to our CC/OD customers (limits above Rs 1 lakh), with effect from July 1,” said SBI in a statement. (CLICK HERE TO READ MORE)
It's not entirely a one-way street, however. The government at least has one goodie to offer. For those with Aadhar numbers and no PANs, a fresh PAN will be allotted.
CBDT issued a notification on August 30 stating that a person who furnishes Aadhaar and does not have PAN “shall be deemed” to have applied for allotment of PAN and they will not be required to apply or submit any other documents. (CLICK HERE TO READ MORE)