GST on cab, delivery apps; ATM withdrawal charges: New rules kick in from January 1
It's the beginning of a new year, and there are a few money changes this month that are likely to impact your wealth.
1. Your cash withdrawal from the ATM could get more expensive
Cash withdrawals will develop into marginally dearer from January 1, 2022, because the Reserve Bank of India (RBI) has introduced new rules for customers exceeding their month-to-month free transactions. From right now, prospects must pay Rs 21 plus taxes to withdraw money for ATM transactions as soon as the restrict exceeds. Currently, the costs are Rs 20. Customers will probably be eligible for 3 free transactions from different banks in metro cities and 5 free transactions in non-metro cities. “To compensate the banks for the higher interchange fee and given the general escalation in costs, they are allowed to increase the customer charges to Rs 21 per transaction. This increase shall be effective from January 1, 2022,” the RBI stated in a round, revising it from the prevailing fee of Rs 20 per transaction.
RBI has additionally allowed the banks to extend interchange charges per transaction from Rs 15 to Rs 17 for monetary transactions and from Rs 5 to Rs 6 for non-monetary transactions throughout facilities from August 1, 2021.
Some banks have already notified their prospects concerning the charge hike for exceeding month-to-month free transactions at ATMs. As per the HDFC Bank web site, the ATM transaction charge fee past the free restrict of Rs 20 + taxes will probably be modified to Rs 21 + taxes as of January 1, 2022. It added “For transactions at HDFC Bank ATMs, only Cash withdrawal transactions will be considered for charging. Non-Financial Transactions (Balance Enquiry, Mini Statement & PIN Change) will be free. For transactions at Non-HDFC Bank ATMs, transactions considered for charging will include both Financial (Cash Withdrawal) and Non-Financial Transactions (Balance Enquiry, Mini Statement & PIN Change)”.
2. Get able to pay extra due to GST associated adjustments
Various shopper items like garments, textiles, footwear will develop into costlier from right now because the GST charges on all these things will enhance to 12 per cent from 5 per cent. The GST on attire priced above Rs 1,000 has been hiked from 5 per cent to 12 per cent whereas the charges for textiles similar to materials, artificial yarn, blankets, tents and different related objects will now value extra because of the hiked GST.
Auto rides and cab rides to get costlier too: The authorities has determined to carry journey-hailing companies like Ola and Uber underneath the ambit of GST with a 5% levy on such companies. However, autos hailed from the road with out the app will proceed to be exempted.
Ordering meals will stay the identical however e-commerce platforms should bear the burden: Platforms like Swiggy and Zomato must gather and deposit 5 per cent GST with the federal government. This was earlier achieved from the restaurant’s finish for the deliveries made by them. Swiggy and Zomato would additionally should subject invoices in respect of such companies. There could be no additional tax burden on the top shopper for ordering meals through these apps as at the moment eating places are amassing and depositing GST. Only, the compliance of deposit and bill elevating has now been shifted to meals delivery platforms.
3. ITR submitting deadline
The Central Board of Direct Taxation (CBDT) had prolonged the Income-Tax Return (ITR) submitting deadline FY 2020-21 for people until 31 December 2021 as a result of of the difficulties confronted by taxpayers in the wake of the Covid-19 pandemic. This is the second time this monetary 12 months that the federal government has prolonged the ITR submitting deadline for people whose accounts should not required to be audited. Earlier, because of the second wave, the ITR submitting deadline was prolonged by two months from the standard deadline of July 31 to September 30, 2021. From January 1, you possibly can file a belated return until March 31, 2022 however this can entice late-submitting charges of Rs 5,000 underneath part 234F. If your earnings is lower than Rs 5 lakh, the penalty is restricted to Rs 1,000, if the earnings tax return (ITR) is filed after December 31 however earlier than March 31, 2022.
4. EPF cash will cease in case you have not linked it with Aadhaar however the nominee deadline prolonged
If you might be an worker in the company sector and have an account with the Employees Provident Fund Organisation (EPFO), it’s essential to hyperlink your account together with your Aadhaar or withdrawals from your EPF account will probably be restricted till your UAN has been confirmed and linked to your Aadhaar quantity. However, the retirement fund physique in a tweet has stated that the account holders will be capable to add nominees by the e-nomination facility even after 31 December as effectively. The earlier deadline so as to add nominees by the e-nomination was 31 December 2021.
