After the union budget in the second quarter of 2022,  three changes are proposed to the income tax rules that have been a reality. After directing in Q2FY23, three main modifications in the income tax rules proposed in the union budget 2022 have become a reality. 

One of them is the doubling of the late fees on PAN-Aadhaar linking. From now onwards, the late fee on the PAN-Aadhaar has been increased from Rs.500 to Rs.1,000. Along with it, 1% of tax deducted at the source (TDS) will be levied on all cryptocurrency transactions from the second quarter of the financial year 2022-23. Moreover, 10% TDS will also be levied on the monetary benefits gained from the sales promotions. We have listed below the three major changes that are going to be applicable from today.

  • TDS on cryptocurrencies

The government of India had proposed an additional 1% TDS on cryptocurrency transactions in the union budget 2022, After the implementation of a 30% flat income tax on cryptocurrencies from 1st April 2022, whether the gain or loss incurred by the investor. The budget proposal had become effective from now. However, an investor would be able to claim a refund of TDS levied on transactions involving losses. Thus, a cryptocurrency investor is recommended to file his/her ITR, if it has been documented in cryptocurrency transactions. You can claim a refund of TDS accomplished on transactions entangling loss. Therefore, It is advised to all the cryptocurrency investors to file an income tax return if they have entered into transactions in cryptocurrency."


  • Doubling fee for PAN-Aadhaar linking- 


This is a major change made by the government of India. As per this change, an individual will have to pay a double fee in case of s/he get late for PAN-Aadhaar linking. The last date for Aadhaar-PAN linking has expired on 30th June 2022. As per the Central Board of Direct Taxes (CBDT) guidelines, if someone wants to link his/her PAN with Aadhaar from 31st March 2022 to 30th June 2022, s/he will have to pay a late fee of Rs.500. However, if a person fails to link PAN with Aadhaar by 30th June 2022, then he or she will have to pay a double fine of Rs.1,000 for PAN-Aadhaar seeding from 1st July 2022. As we are in Q2FY22 now, so, one will have to pay Rs.1,000 for PAN-Aadhaar seeding.


  • Income Tax rule change for doctors and influencers- 

The government of India inserted a new section 194R in the Income Tax Act, 1961 while introducing the budget in the union budget 2022. The added new section-194R proposes 10% of TDS on benefits obtained via sales promotion on doctors and social media influencers. This introduced budget submission has become applicable from 1st July 2022. However, the TDS will be applicable only when the cost of the benefit is Rs.20,000 or more in a financial year.

How does section 194 work?

On how Section 194R would work, Jitendra Solanki, the investment expert of SEBI registered tax stated “If a private doctor is acquiring samples from a drug manufacturer company and the cost of all such samples obtained goes above Rs. 20,000 in a financial year, then it will entice 10% of TDS. Regardless, if the doctor is employed at a private hospital, then 10% TDS will be levied on the hospital. It is very crucial to understand that section 194R is not applicable to government commodities. So, if a doctor employed at a government hospital is receiving free medical samples, s/he does not need to pay 10% of TDS."