Income Tax: 3 Main Changes in Income Tax Laws to Start from Today, Details Inside

3 main changes to the income tax laws that were included in the union budget 2022 became effective with the start of Q2FY23. One of the guidelines is that the late cost for PAN-Aadhaar connection would be doubled. The late charge for PAN-Aadhaar seeding has increased from 500 to 1,000 as of today. A 1% Tax Deduction at Source (TDS) will also be applied to all bitcoin transactions starting in Q2FY23, or right now. In the meantime, starting today, 10% TDS is also applicable to financial benefits obtained from sales promotion on medical professionals and social media influencers.

Here are 3 significant changes to income tax laws as of right now:

Double Fee for PAN Aadhaar Linking: The deadline for PAN-Aadhaar linkage has passed on June 30, 20222, hence there is a double charge. According to CBDT regulations, if someone links their PAN with Aadhaar between March 31, 2022, and June 30, 2022, they must pay a late fee of Rs 500. A twofold fine of Rs 1,000 for PAN-Aadhaar seeding will be imposed starting on July 1st 2022 if a person fails to link their PAN with Aadhaar by June 30, 2022. One will be required to pay Rs 1,000 for PAN-Aadhaar seeding as we are now in Q2FY22.

TDS on Cryptocurrency: The Government of India (GoI) had suggested an additional 1% TDS on cryptocurrency transactions in the union budget 2022, regardless of the gain or loss experienced by the investor, following the application of a 30% flat income tax on cryptocurrencies from 1st April 2022. The proposed budget was now in force as of today. Investors, however, would be eligible to request a refund of TDS imposed on transactions that resulted in losses. An investor in cryptocurrencies is therefore encouraged to file an ITR if they have engaged in cryptocurrency transactions.

Sujit Bangar, the founder of Taxbuddy.com, provided the following explanation of how TDS will be assessed on digital assets: "TDS at a rate of 1% has been recommended for transactions involving cryptocurrencies as of July 1, 20222. It's important to remember that whether we sell cryptocurrency for a profit or a loss, TDS of 1% will undoubtedly apply. We are entitled to a TDS refund for transactions that resulted in losses. Therefore, if you have engaged in cryptocurrency transactions, it would be advised that you file an income tax return."

I-T Rule Change for Doctors, Influencers: The Government of India included a new section 194R to the Income Tax Act of 1961 in the Union Budget of 2022. The 10% TDS on advantages obtained from sales promotion on physicians and social media influencers is proposed in this new section. This budget plan is now operative as of today, July 1, 2022. However, the TDS won't be applied unless the benefit costs at least 20,000 in a single fiscal year.

Jitendra Solanki, a tax and investment expert registered with SEBI, explained how Section 194R would operate as follows: "If a private doctor is receiving samples from a drug maker company and the cost of all such samples received exceeds 20,000 in one financial year, then it will attract 10% TDS.

However, if the doctor works for a private hospital, the hospital will be charged 10% TDS in that situation. It is crucial to understand that Section 194R does not apply to government bodies. Therefore, a doctor working for a government institution who receives free medical samples is exempt from paying the 10% TDS.