In this article, I have brief five major changes effective from 01.07.2020.
Restrictions
on ATM withdrawals are back
The Finance Minister on
24 March, 2020 announced that for three
months debit cardholders could withdraw cash from any bank’s ATM free of charge
for the next three months.
From today on wards, this
relaxations has ended and the regular limits and charges will apply.
Penalty
for non-maintenance of bank account balance
Another relief provided
by FM in March was the waiver of penalty on non-maintenance of bank account
balance for three months.
This relief are over on 30 June, 2020. Now non-maintenance of minimum balance will again attract a penalty. The penalty amount levied for non-maintenance of minimum balances will vary from bank to bank.
Stamp
duty on buying of shares and mutual fund units
From 1 July, all shares
and mutual fund purchases will attract a stamp duty of 0.005 per cent and any
transfer of security (MF units) will attract a stamp duty of 0.015 per cent.
The government had introduced changes to the Stamp duty Act last year by
introducing a uniform rate of stamp duty on trading of shares and commodities.
Higher
penal interest on delayed tax payments
For delayed payments of
advanced tax, self-assessment tax, regular tax, TDS, TCS, equalization levy,
STT, CTT made between 20th March 2020 and 30th June 2020, the reduced interest
rate at 9% per annum instead of 12% or 18% will be charged for this period. No
late fee/penalty shall be charged for delay relating to this period.
Any delayed tax payment
made after June 30, 2020 will attract penal interest of 12 per cent /18 per
cent as applicable instead of 9 per cent.
TDS
on cash withdrawal
Section
194N of Income Tax Act
TDS on payment of
certain amounts in cash
Deductor: Bank, Co-operative bank or a
post office
If aggregate payment in
cash from one or more accounts during a previous year to an account holder
exceeds the threshold limit given below:
Time of Payment |
Threshold limit for payment in cash |
TDS Rate |
On or after 01.07.2020 |
Customer who have not filed their
tax returns for the previous 3 years and for which the due date for filing
tax return has expired: 1. exceeding
Rs. 20 lakh but not exceeding Rs. 1 crore 2. exceeding
Rs. 1 crore |
2% 5% |
On or after 01.07.2020 |
Customers
other than mentioned above: 1.
up to Rs. 1 crore 2.
2. exceeding
Rs. 1 crore |
0% 2% |
The
applicability of new provision as per amendments in the Finance Act 2020
The
cash withdrawal limit for this F/Y will be considered from 01.04.2020.
for more details go to this link
https://carahuldmittal.blogspot.com/2020/06/new-rule-for-cash-withdrawal-effective.html
Disclaimer: This is meant purely for general education purpose.While the information is believed to be accurate to the best of my knowledge, I do not make any representations or warranties, express or implied, as to the accuracy or completeness of this information. Reader should conduct and rely upon their own examination and analysis and are advised to seek their own professional advice. This note is not an offer, invitation, advice or solicitation of any kind. I accept no responsibility for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies upon it.
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