{"id":242,"date":"2022-07-08T05:59:55","date_gmt":"2022-07-08T05:59:55","guid":{"rendered":"https:\/\/komplytek.com\/blogs\/?p=242"},"modified":"2022-07-08T05:59:55","modified_gmt":"2022-07-08T05:59:55","slug":"from-pan-to-crypto-new-income-tax-reforms-that-take-effect-on-july-1","status":"publish","type":"post","link":"https:\/\/komplytek.com\/blogs\/from-pan-to-crypto-new-income-tax-reforms-that-take-effect-on-july-1\/","title":{"rendered":"From Pan to Crypto: New income tax reforms that take effect on July 1"},"content":{"rendered":"<body><p class=\"root-block-node\"><span lang=\"EN-IN\">Starting July 1, 2022, a number of changes will take effect that will have an impact on your income tax. In this regard, it is also crucial to keep in mind that July 1, 2022, also marks the beginning of the fiscal year\u2019s second quarter. This includes changes to the laws governing income tax and TDS on cryptocurrency. These are some significant changes in income tax reform that will take effect on July 1, 2022.<o:p><\/o:p><\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/komplytek.com\/blogs\/from-pan-to-crypto-new-income-tax-reforms-that-take-effect-on-july-1\/#TDS_on_Cryptocurrencies\" >TDS on Cryptocurrencies:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/komplytek.com\/blogs\/from-pan-to-crypto-new-income-tax-reforms-that-take-effect-on-july-1\/#The_PAN-Aadhaar_Non-Linkage_costs_twice_as_much\" >The PAN-Aadhaar Non-Linkage costs twice as much:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/komplytek.com\/blogs\/from-pan-to-crypto-new-income-tax-reforms-that-take-effect-on-july-1\/#For_doctors_and_social_media_influencers_the_new_income_tax_information_is_as_follows\" >For doctors and social media influencers, the new income tax information is as follows:<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/komplytek.com\/blogs\/from-pan-to-crypto-new-income-tax-reforms-that-take-effect-on-july-1\/#Update_on_Income_Tax_IT_Return_Filing\" >Update on Income Tax (IT) Return Filing:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/komplytek.com\/blogs\/from-pan-to-crypto-new-income-tax-reforms-that-take-effect-on-july-1\/#Changes_in_Demat_KYC_Rules\" >Changes in Demat KYC Rules:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/komplytek.com\/blogs\/from-pan-to-crypto-new-income-tax-reforms-that-take-effect-on-july-1\/#Why_choose_us\" >Why choose us?<\/a><\/li><\/ul><\/nav><\/div>\n<h3 id=\"mcetoc_1g7e5im8p0\"><span class=\"ez-toc-section\" id=\"TDS_on_Cryptocurrencies\"><\/span><span lang=\"EN-IN\"><strong>TDS on Cryptocurrencies:<\/strong><o:p><\/o:p><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p class=\"root-block-node\"><span lang=\"EN-IN\">In January 2022, Finance Minister Nirmala Sitharaman suggested a 1% tax deducted at\u00a0source (TDS) on any payment made in exchange for the transfer of virtual digital assets\u00a0(VDAs), often known as cryptocurrencies and non-fungible tokens (NFTs). The TDS\u00a0regulation will be in force beginning on Friday, July 01, 2022 for transactions with a value of more than Rs. 10,000.<o:p><\/o:p><\/span><\/p>\n<p class=\"root-block-node\"><span lang=\"EN-IN\">A 20% tax deduction will be made at the time of transfer of the VDA if the deductee\u2019s (buyers\u2019) PAN is not immediately accessible. If the payer is not one of the people listed and they have not filed their income tax return, TDS will also be withheld at a higher rate of 5 percent (instead of the standard rate of 1 percent).<o:p><\/o:p><\/span><\/p>\n<h2 id=\"mcetoc_1g7e5jbte1\"><span class=\"ez-toc-section\" id=\"The_PAN-Aadhaar_Non-Linkage_costs_twice_as_much\"><\/span><span lang=\"EN-IN\">The PAN-Aadhaar Non-Linkage costs twice as much:<o:p><\/o:p><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"root-block-node\"><span lang=\"EN-IN\">The final day for connecting Aadhaar and PAN was June 30, 2022. In line with CBDT regulations, if a person combines their PAN with Aadhaar between March 31, 2022, and June 30, 2022, they must pay a 500-rupee late fee. However, if someone fails to connect their PAN with their Aadhaar before June 30, 2022, they will be subject to a twofold fine of Rs. 1,000 starting on July 1st, 2022.<o:p><\/o:p><\/span><\/p>\n<h2 id=\"mcetoc_1g7e5jkct2\"><span class=\"ez-toc-section\" id=\"For_doctors_and_social_media_influencers_the_new_income_tax_information_is_as_follows\"><\/span><span lang=\"EN-IN\">For doctors and social media influencers, the new income tax information is as follows:<o:p><\/o:p><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"root-block-node\"><span lang=\"EN-IN\">Rewards received from businesses for sales promotion by doctors and social media influencers will be subject to a 10% tax deduction at source starting July 1, 2022. (TDS). In line with a notice from the Central Board of Direct Taxes (CBDT), the giver of the benefit or perquisite may immediately deduct the tax under Section 194R. However, the taxpayer must confirm the recipient\u2019s possession of any taxable sums.<o:p><\/o:p><\/span><\/p>\n<p class=\"root-block-node\"><span lang=\"EN-IN\">In line with Section 194R, taxes must be deducted from benefits and perks when their total worth exceeds Rs. 20,000.<o:p><\/o:p><\/span><\/p>\n<h3 id=\"mcetoc_1g7e5k56r3\"><span class=\"ez-toc-section\" id=\"Update_on_Income_Tax_IT_Return_Filing\"><\/span><span lang=\"EN-IN\">Update on Income Tax (IT) Return Filing:<o:p><\/o:p><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p class=\"root-block-node\"><span lang=\"EN-IN\">The new income tax regulations now include a new clause that enables taxpayers to file a\u00a0revised return in the event that their income tax returns contain errors or inaccuracies. Taxpayers now have two years from the conclusion of the applicable assessment year to file\u00a0an amended return.<o:p><\/o:p><\/span><\/p>\n<h3 id=\"mcetoc_1g7e5kg604\"><span class=\"ez-toc-section\" id=\"Changes_in_Demat_KYC_Rules\"><\/span><span lang=\"EN-IN\">Changes in Demat KYC Rules:<o:p><\/o:p><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p class=\"root-block-node\"><span lang=\"EN-IN\">To prevent having your demat account frozen, you must complete your KYC before June 30.\u00a0To update your KYC, you must provide your name, place of residence, PAN, active mobile\u00a0phone number, active email address, and range of income. But starting on July 1, your demat\u00a0account will likewise be inactive if you do not do this.<o:p><\/o:p><\/span><\/p>\n<h2 id=\"mcetoc_1g7e5kpk65\"><span class=\"ez-toc-section\" id=\"Why_choose_us\"><\/span><strong><span style=\"font-weight: normal;\" lang=\"EN-IN\">Why choose us?<\/span><\/strong><span lang=\"EN-IN\"><o:p><\/o:p><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"root-block-node\"><span lang=\"EN-IN\"><a href=\"https:\/\/komplytek.com\/\">Komplytek i<\/a>s a leading business advisory and consulting firm that specialises in management consulting. Our areas of expertise include financial operations; payroll management; human resources; payroll management; strategies and development; financial planning; and consulting in data analysis. We also help businesses all over the world with their planning and operational challenges.<o:p><\/o:p><\/span><\/p>\n<p class=\"root-block-node\"><span lang=\"EN-IN\">By using artificial intelligence, we also provide businesses with more flexibility, wiser judgement, and data-supported options with reduced costs and risks.<o:p><\/o:p><\/span><\/p>\n<p class=\"root-block-node\"><span lang=\"EN-IN\">By collaborating with a firm to develop development ideas or carry out operations, we greatly increase a company\u2019s value. Additionally, we provide excellent, safe, and customised solutions based on your company\u2019s needs.<o:p><\/o:p><\/span><\/p>\n<p class=\"root-block-node\"><span lang=\"EN-IN\">Komplytek is a one-of-a-kind company that provides a variety of consulting and outsourcing services to clients worldwide. By outsourcing the finance and compliance functions of the firms to us, we make it convenient for business owners to focus on their essential and core business activities. We are a \u201cOne-Stop Solution\u201d for finance and accounting, compliance and regulatory, and other operational portfolios. Our solutions can also be tailored to meet your specific business needs.<o:p><\/o:p><\/span><\/p>\n<p class=\"root-block-node\"><span lang=\"EN-IN\">Our team comprises of people who have extensive industry knowledge, skills, and experience. This is crucial in addressing any turbulence in the business world and guaranteeing smooth operations. We ensure that we think like you and act as part of your team rather than an outsourcing partner.<o:p><\/o:p><\/span><\/p>\n<p class=\"root-block-node\"><span lang=\"EN-IN\">To assist our clients, follow the law, we also lower risk by combining the finest strategic approach with cutting-edge technology.<o:p><\/o:p><\/span><\/p>\n<\/body>","protected":false},"excerpt":{"rendered":"<p>Starting July 1, 2022, a number of changes will take effect that will have an impact on your income tax. In this regard, it is also crucial to keep in mind that July 1, 2022, also marks the beginning of the fiscal year\u2019s second quarter. This includes changes to the laws governing income tax and &#8230; <a title=\"From Pan to Crypto: New income tax reforms that take effect on July 1\" class=\"read-more\" href=\"https:\/\/komplytek.com\/blogs\/from-pan-to-crypto-new-income-tax-reforms-that-take-effect-on-july-1\/\" aria-label=\"Read more about From Pan to Crypto: New income tax reforms that take effect on July 1\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":243,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[81,12,5,57,13,30,10],"tags":[],"class_list":["post-242","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting-advisory-services","category-accounting-financial","category-audit-assurance","category-auditing-services","category-bookkeeping","category-business-consulting-firm","category-business-management-consultant"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>From Pan to Crypto: New income tax reforms that take effect on July 1 -<\/title>\n<meta name=\"description\" content=\"A 20% income tax deduction will be made at the time of transfer of the VDA if the deductee&#039;s (buyers&#039;) PAN is not immediately accessible. 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