A number of changes will be in effect from tomorrow i.e. 1 July which is likely to impact you. Zee Business has compiled some of the important ones for its readers.
Here is a list of important developments that will be in force from 1 July, Friday
1. Ban on single-use plastic: On 28th of June, the Ministry of Environment, Forest and Climate Change notified the ban of the manufacture, stocking, distribution, import, sale, and use of identified single-use plastic items in India from the 1st of July, 2022.
2. RBI’s new regulation on credit cards: The RBI apprised under Credit Card and Debit Card – Issuance and Conduct that the credit card companies are advised not to send undesirable credit cards to clients. Also, the RBI rule referenced that the billing cycle of your credit card will start on the eleventh day of the earlier month and end on the tenth day of the ongoing month. Moreover, if the card doesn’t close on request of the customer within seven working days, the company will be responsible to pay Rs 500 daily to the client till the time it is closed.
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3. Not linking PAN with Aadhar penalty: From April 1, 2022 the penalty of Rs 500 is applicable for PAN – Aadhaar linking within three months, i.e. June 30, 2022. The fine will increase to Rs 1,000 for those who are thinking to link their PAN to their 12-digit identification number, Aadhaar after July 1st. However, the deadline to link PAN with Aadhaar has been extended to March 31, 2023 but the penalty will be levied if it is done on or after 1st July.
4. TDS rule for doctors, social media influencers: Finance Act 2022 embedded another part 194R in the Income-charge Act, 1961, according to which, the people who get benefits from companies for sales promotion should pay TDS at the rate of 10%, from 1st July.
5. KYC is important for Demat accounts: 30th June is the deadline to do your KYC for the Demat account. Details like name, address, PAN, valid mobile number, income range, and valid email ID need to be updated with your KYC. Otherwise, you will not be able to credit the security and your Demat account will be rendered invalid from July 1st.
6. TDS on cryptocurrencies transactions: On all virtual digital asset transfers, TDS deduction of 1% was announced by our Finance Minister Nirmala Sitharaman in this year’s Budget. A detailed guideline was issued by the Central Board of Direct Taxes (CBDT) for the provision of TDS reduction on virtual digital assets (VDA). This will come into force from the 1st of July.
7. IPO rules change: Sebi has notified organisations the adaptability to utilize a limit of 35% of their equity-issuance proceeds with a cap of 25% towards an unidentified securing from an IPO. The NII category investment limit for IPOs above Rs 10000 cr is 2 lakh to 10 lakh. And the Lock-in will be 90 days for a 50% investment of anchor.
8. Vehicle price hike: Several automobile companies have increased the prices of their cars from April 2022. Factors like Russia-Ukraine war and the resurgence of the Covid-19 wave in US, UK and China played a major role in the limited supply of parts in the market, resulting in an increase in the cost of production. The price hike for several companies will come into effect from 1 July.