New credit rules | Pan Aadhaar Liaison: Crypto TDS, New Credit Card Rules, Higher PAN-Aadhaar Liaison Fine: 5 changes coming into effect from July

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July will bring with it several important financial changes. These include higher PAN Aadhaar link penalty, KYC demat delay, new credit card rules, new NPS risk profiling, crypto TDS, and more. Here’s a look at five currency changes taking effect from July.

TDS on Crypto

On June 22, 2022, the Central Commission for Direct Taxation (CBDT) issued a circular outlining the tax deduction process for transfers of virtual digital assets (VDAs) and cryptocurrencies. As of July 1, 2022, new TDS regulations regarding VDA and cryptography will be in place.

The buyer of a virtual digital asset (VDA) must deduct 1% of the amount paid to the seller (an Indian resident) as income tax withheld at source under the new rule (TDS). Whichever occurs first, the tax must be subtracted either when the money is credited to the account or when it is paid to the resident individual. According to CBDT, the tax will only be deducted if the amount paid is greater than the maximum allowed. Read more: How TDS on crypto, virtual digital assets will work from July 1, 2022

PAN- Aadhaar linking with fine

If PAN-Aadhaar are linked on or before June 30, 2022, linking PAN to Aadhaar will cost you Rs 500 from April 1, 2022. A fee of Rs 1,000 must be paid if the linking of PAN and Aadhaar is done on or after July 1, 2022. After March 31, 2022, a fee of up to Rs 1,000 will be levied for PAN-Aadhaar connection. It has already been announced. The cost structure is now clear.

KYC demat deadline

The deadline for making existing demat and trading accounts KYC compliant is June 30, 2022.

Know-your-customer (KYC) compliance for trading and demat accounts got about three more months.

A requester, holder of a trading account is required to update the following KYC attributes:

a name

b) Address

c) PAN

d) Valid mobile number

e) Valid email id

f) Income range

All 6-KYC attributes are made mandatory for new accounts opened from June 1, 2021.

Read more: KYC deadline for demat accounts extended: One-time extension valid until this date

New credit card rules

Credit card billing rules: RBI said: “In order to avoid repeated complaints about late billing, the card issuer may offer to issue bills and account statements via internet/mobile banking with the informed authorization of the card holder. Card issuers must have a system in place to ensure that the cardholder receives the billing statement.”

Credit card closure rules: Banks are required to honor credit card cancellation requests by immediately contacting the customer via email, text or another channel.

Customers should have access to a variety of channels, including a helpline, dedicated email address, interactive voice response (IVR), visible link on website, internet banking, app mobile or any other form, and they cannot be forced to use a particular method.

Read more: New credit card closing rules in effect from July 01, 2022

NPS Risk Profiling

According to a circular from the PFRDA, subscribers would be exposed to different levels of risk when investing in different classes of pension fund assets. Accordingly, it is hoped that adequate disclosure of the risks involved in the various NPS systems will be made available so that subscribers are aware of them.

These risk levels will help provide accurate information about the dangers of different NPS programs before you participate. As of July 15, 2022, the new rules will apply to all existing Class E, C, G and A plans.

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