From New TDS Rules To SBI' revised Service Charges; Know Key Changes To Be Applicable From July 1

According to the new provision, tax deduction or tax collection will be subjected to a higher rate in case the income tax returns are not filed by specified persons.

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New Delhi: From starting July 1, there will be a slew of changes that will kick in starting from new TDS rules to revised service charges in the State Bank of India and more. These changes are going to have a bearing in our financial lives and it’s important to take note of them.

Here are changes to be effective from July 1

One of the most important changes is related to the income tax rules. The Finance Act 2021 amended rules related to tax deducted at source, which will come into effect from July 1. According to the new provision, tax deduction or tax collection will be subjected to a higher rate in case the income tax returns are not filed by specified persons.

The new provision has been included in the Union budget 2021-22 that comes into effect from July 1. According to the new provision, the tax deductor/collector needs to check if the income-earner has filed the returns for the previous two years and whether the amount of TDS deducted is Rs50,000 or more.

The new income tax portal has provided the facility to check by entering the PAN numbers. If the returns have not been filed, then the TDS deducted will be double the existing TDS rate or at a rate of 5%, whichever is higher.

It is to be noted that the new TDS norm excludes salary income, provident fund payments, TDS on lottery and horse racing.

SBI new service charges

SBI has made some major changes in the rules of banking services from July 1, 2021. Under these new rules of SBI, customers can now withdraw money up to four times from ATMs and bank branches without any service charge. Thereafter, every withdrawal from an ATM or branch will attract a service charge. On withdrawal from an ATM or branch, the customer will have to pay Rs 15 plus GST for every transaction as a service charge. The same rule will be applicable for withdrawing money from any ATM other than SBI.  Apart from this, chequebooks will also be charged from July 1.  

These new rules of SBI are for customers with a Basic Savings Bank Deposit (BSBD) account. BSBD is also called a zero balance savings account and the customer does not need to maintain a minimum or maximum balance.

LPG cylinder price hike

Oil companies normally revise the prices of LPG cylinders at the beginning of every month.. There are chances that LPG prices may be revised next month. At present, the price of a 14.2 KG LPG cylinder, which is commonly used in our households, is Rs 809 in Delhi. 

According to the Business Standard report, the managing director and chairman of ONGC Subhash Kumar said that for the period of October 2021 to March 2022, the prices of natural gas is going to be increased by 50 to 60 percent.

New IFSC codes and cheque books for Syndicate Bank customers

If you have been using the IFSC codes and cheque books of Syndicate Bank, then it's time to note that both will become invalid from July. The customers of Syndicate Bank have been told to update their Bank Branch’s IFSC code by 30 June.

The present e-Syndicate Bank Cheque book with old MICR and IFSC will remain valid up to June 30, 2021, as per the Canara Bank tweet.