In view of the Covid-19 disaster, Finance Minister Nirmala Sitharaman in March this year had introduced some of alleviation measures for taxpayers and the commonplace guy, which include the waiver of ATM withdrawal charges and rest in EPF withdrawal regulations. Taking into consideration the difficulty confronted by way of the human beings at some stage in the lockdown, the authorities has lately similarly extended the due dates for numerous compliance necessities related to profits tax for FY 2019-20 and FY 2020-21.
Still, the deadlines for certain comfort measures have ended now, while some new rules were introduced powerful from July 1, 2020. Therefore, it is in your very own interest to take be aware of those adjustments and also to avoid any price or penalty.
Here we are taking a study 5 changes in such rules effective from today:
1. PF withdrawal relaxation deadline ends
The authorities had announced some months returned that it might permit the Employees’ Provident Fund subscribers to make a partial non-refundable withdrawal from their PF money owed to address coins-crunch problems resulting out of the winning Covid-19 crisis. However, the deadline to avail of this facility has now ended. Now this could disappoint some of you who were planning to make a PF withdrawal. That said, in case you were not able to accomplish that, you ought to also study the bright facet. Your PF is the backbone of your retirement savings, and the longer it gets to grow without getting faded by way of partial withdrawals, the bigger is the dimensions of the final corpus. More so due to the fact PF interest rates are typically higher than maximum small-savings schemes like PPF and NSC with out involving any additional investment danger.
Now, “if your profits channels have were given adversely impacted because of the pandemic, you may need to look for different method to elevate cash. These may be digging into your emergency fund, pausing or liquidating a non-vital investment, or taking a loan in opposition to your gold, endowment plans and securities like shares and mutual fund investments. If you’re also servicing a home loan, you can also take the moratorium help until August 31, 2020 to shop a few cash. However, since hobby will accrue if you choose this facility, make sure you have a plan to pay off this gathered hobby alongside your normal EMIs quickly after the moratorium ends via making adequate prepayments,” says Adhil Shetty, CEO, BankBazaar.Com.
2. Return of ATM coins withdrawal fees
In March this year, in view of the Coronavirus outbreak, Finance Minister Nirmala Sitharaman had announced a number of alleviation measures for the not unusual guy, together with the waiver of ATM withdrawal costs for three months, which ended on June 30. Now you may be required to pay the applicable charges for the use of your ATM playing cards for retreating coins from ATMs.
Financial professionals, however, accept as true with that the return of ATM charges from July 1 is a good opportunity for greater people to show to the ubiquitous UPI as well as your debit and credit score cards. The key’s to reduce dependence on cash. “In the modern-day scenario with a raging pandemic, it’s miles recommended to keep away from ATM queues or managing notes and coins which can be simply greater surfaces that may deliver infections. There are numerous UPI apps now to be had in your smartphone. You can use them to not simply pay payments to your daily transactions however additionally to avail occasional rewards such as cashback. Similarly, make the most of the rewards you’re eligible for to your cards, apart from taking part in the hobby-free period in your credit score card,” says Shetty.
3. Pay extra interest on enhance tax
The FM had announced some remedy measures related to fee of taxes in the course of the lockdown duration, if such taxes had been paid brand new via 30 June this year. One such alleviation measure became associated with the interest fee on strengthen tax. It may be cited that the first instalment of develop tax is needed to be paid via June 15 every year. So, if that is paid by this date, then no interest is levied. After that one is needed to pay hobby at the taxes due.
The authorities had in advance notified that if this tax is paid after June 15 but by using June 30 this yr, then interest on the not on time payment of taxes could be levied at zero.Seventy five per cent a month, instead of 1 according to cent. In view of the Coronavirus disaster, but, the FM currently in addition prolonged the due dates for various compliance necessities associated with earnings tax for FY 2019-20 and FY 2020-21, however the stated notification did not extend the reduced interest charges for advance tax payments made past June 30, 2020. This way that the ones paying their boost tax now will have to pay 1 in step with cent hobby at the taxes due in preference to the decreased fee of 0.75 consistent with cent.
4. Changes in stamp obligation rules
Stamp obligation changed into in advance levied on precise transactions and documents, mostly on belongings transactions. However, being a kingdom subject, it extensively utilized to vary from nation to kingdom. The authorities has now made stamp obligation uniform throughout the united states and has also made some changes in its rules.
A notification issued by means of the Ministry of Finance on June 30 said that a good way to facilitate ease of doing commercial enterprise and to usher in uniformity of the stamp obligation on securities across states and thereby construct a pan-India securities marketplace, the Central authorities has created the felony and institutional mechanism to allow states to acquire stamp duty on securities marketplace devices at one area by one agency (through Stock Exchange or Clearing Corporation legal by means of it or by the Depository) on one Instrument. A mechanism for appropriately sharing the stamp responsibility with applicable nation governments has additionally been advanced which is based at the state of domicile of the consumer.
From July 1, 2020, stamp responsibility may also be imposed on diverse contraptions like mutual price range. The notification, however, states that mutual price range, being transport-based totally transactions in securities, have been speculated to have been paying the obligation as per diverse State Acts. So, now all MF transactions are responsible for stamp duty and the brand new device has best standardized the fees throughout states and the way of collection of stamp responsibility.
5. Pay penalty for not maintaining minimal account balance
Apart from allowing the waiver of withdrawal prices throughout ATMs, the FM had in March this 12 months additionally announced suspension of the minimum balance requirement rate within the financial savings bills of banks. This was for three months until June 30 and correctly has ended now due to the fact no extension of this facility has been made by way of the government. Therefore, if you aren’t maintaining the minimal stability on your financial savings account attributable to the Covid-19 crisis or any other purpose, then be prepared to pay the specified charges on it from these days.