New Delhi: India is set to witness a slew of changes, related to common man’s pocket from September 1. From new traffic rules to Tax Deduction at Source (TDS), from service charges on e-tickets to Aadhaar-PAN linking, take a look at a list of crucial finance-related amendments that will come into effect from today.
TDS on additional payments made at the time of purchasing an immovable property: From September 1, 2019, payments for amenities such as club membership fees, car parking fee, electricity and water facility fee and so on will be included in the cost of buying property in a bid to calculate the amount to be paid for the property for the purpose TDS deduction.
2% TDS on Cash withdrawals of over Rs 1 crore: From September 1, 2019, there will be a two per cent tax deduction on cash withdrawals of over Rs 1 crore from an account held with a bank, cooperative bank or post office. Union Finance Minister Nirmala Sitharaman, had made the provision of levying two per cent TDS on cash withdrawals exceeding Rs 1 crore in July, while presenting the Union Budget FY 2019-20.
TDS on payments made to contractors and professionals by Hindu Undivided Family or individual: An individual or HUF (Hindu Undivided Family) availing contractual or professional services exceeding Rs 50 lakh in a year, will have to deduct 5 per cent TDS at the time of crediting such amount.
PAN-Aadhaar linking: People who have not linked their pan cards with Aadhaar will be issued a new PAN. The older PAN will be considered invalid if not linked with Aadhaar by September 1, 2019, as under Section 139AA (2) of the Income Tax Act. One can send an SMS to 567678 or 56161 from their registered mobile number in the following format – UIDPAN<12 digit Aadhaar number><10 digit PAN number>
Service charges on e-tickets: As The Indian Railways has decided to restore service charges from September 1, the e-ticket booked through will get costlier. The Indian Railways will levy a service charge of Rs 30 for AC classes and Rs 15 for non-AC reservations. Besides, Goods and Services Tax (GST) will be applied separately.
Paytm, PhonePe or GooglePay KYC update
People using mobile wallets like Paytm, PhonePe or GooglePay will have to complete their KYC as the deadline was August 31, 2019. The central bank would block all their mobile wallet accounts from today if they fail to do so.
Changes in SBI home loan and auto loan
From Sunday, September 1, home loans, as well as auto loans of the State Bank of India (SBI), will be repo-linked at interest rates starting from 8.05 per cent. The new interest rates will be applicable to all existing and new loans, which means, any changes in the key interest rate by the RBI would be passed on directly to the customers.
TDS on a life insurance policy: From September 1, 2019, the TDS rate under section 194DA (TDS on life insurance policy) has been increased from 1% to 5 %. Notably, TDS is levied if the maturity proceeds exceed Rs 1 lakh.