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7 new Income tax changes that you should start complying from today.
7 new Income tax changes that you should start complying from today.
These changes were presented by Honorable FM Ms Nirmala Sitharaman in her full budget in July'19. She proposed numerous changes. Out of those many changes, you (as an income tax payer or consultant) get effected by 7. These 7 changes get effective from today. So you should comply with them from today.
Before telling you about these 7 changes, for your convenience, let me break them into two parts:
- One that you have to do.
- Second that others would do but would impact you.
PART-1 - That you have to do. They are 4 in count.
1 PAN-AADHAR LINKING
You should link your PAN with your Aadhar.Your PAN would become inoperative if you don't link it with your Aadhar.
2 TDS DEDUCTION:
You should deduct TDS @ 5% if you pay more than Rs50lac to a professional or a contractor in a year.
3 TDS DEDUCTION:(One more)
You should add other expenses like parking fees etc to the property purchase price, if you pay them while buying. And if the sum is more than Rs50Lac then deduct TDS @ 1%.
4 USE AADHAR IN PLACE OF PAN:
In some cases, transactions you may use your AADHAR number in place of PAN.
PART 2 - That others would do but it would IMPACT you:
1 TDS ON CASH WITHDRAWALS:
If you withdraw more than Rs1crore from your bank account then banker would deduct 2% TDS from your withdrawals.
2 TDS ON LIFE INSURANCE MATURITIES:
Insurance companies would deduct TDS @ 5% on taxable portion of matured amount.
3 TAX DEPARTMENT MAY ASK YOUR BANK:
Tax department may ask your bank to furnish details of any transaction to them.
