Beginning July 1, a host of new rules and changes will come into effect ranging from new TDS rules to a possible hike in LPG cylinder prices to the State Bank of India's revised service charges, impacting the common man in various ways.

Live TV

Loading...

Here’s a list of such major changes that may start from July 1:

New TDS rules

The Finance Act 2021 has amended rules relating to tax deducted at source (TDS), which will come into effect from July 1. Under the new guidelines, people who have not deposited income tax returns (ITR) for the previous two years will be subject to a higher TDS.

Finance Act, 2021 has inserted two new sections 206AB and 206CCA which mandates tax deduction (206AB) or tax collection (206CCA) at a higher rate in the case of specified persons with respect to tax deductions (other than under sections 192, 192A, 194B, 194BB, 194LBC, and 194N) and tax collections.

According to Kapil Rana, Founder & Chairman, HostBooks Ltd, a higher rate is twice the prescribed rate or five percent whichever is higher.

Simply put, if a TDS of Rs 50,000 or more has been made for the past two years but no return of income has been filed, the rate of TDS will be double the specified rate or five percent, whichever is higher.

However, this provision will not be applicable for the transactions where the full amount of tax is required to be deducted, e.g. salary income, payment to a non-resident, lottery, etc. Also, the specified persons will not include a non-resident who does not have a permanent establishment in India.

SBI new service charges

State Bank of India (SBI) has revised service charges for Basic Savings Bank Deposit (BSBD) account holders that will come into effect from July 1.

"The new charges would apply to ATM withdrawals, cheque book, transfer and other non-financial transactions," the bank said on its website.

Charges will be levied after four free cash withdrawals (including at ATM and branch) in a month. Subsequently, a Rs 15 plus GST will be charged at all SBI and non-SBI ATMs.

LPG cylinder price hike

Oil companies may revise the prices of LPG cylinders from July 1. These rates are updated on the 1st of every month. At present, the price of a 14.2 KG LPG cylinder, which is commonly used in our households, is Rs 809 in Delhi.

New IFSC codes and cheque books for Syndicate Bank customers

State-owned Canara Bank announced that customers of the erstwhile Syndicate Bank, which merged into Canara Bank, will have to use the new IFSC (Indian Financial System Code) for online transactions starting July 1.

As part of the integration process for Syndicate Bank customers, Canara Bank has given a notice that IFSC codes starting with SYNB will now be changed to CNRB.

(Edited by : Ajay Vaishnav)