- Date : 05/09/2019
- Read: 3 mins
To ensure you are abreast of all these different rules, we bring to you a collated list.
Did not pay income tax? Broke a traffic signal? Gone on a shopping spree? There are a lot of new rules and penalties that have come into play.
Stay aware and adhere to the following new rules.
1. Missed ITR deadline
The deadline for filing your Income Tax Returns was extended from July 31 to August 31. If you still procrastinated or missed filing your tax returns, there are some heavy fines you will have to bear. A new addition to the Income Tax Act, section 234F, states that individuals will have to pay a fee of up to Rs 10,000 for filing ITR after the deadline for AY 2018-19.
Related: How to File your Income Tax Returns (ITR) Online
2. Violate traffic rules
A large number of traffic rules have changed, and fines have been increased by almost 5 times. Driving an unauthorised vehicle as well as driving without a license will demand a penalty of Rs 5000. In case of drunken driving, the driver will be penalised at Rs 10,000 and/or imprisonment of up to 6 months for the first offence. This will be increased to Rs 15,000 fine and imprisonment of up to 2 years for the second offence. There will be a fine of Rs 1000 for driving without a seatbelt and Rs 5000 for talking on the phone while driving.
3. Cash-heavy transactions
Withdrawing large amounts of cash from the bank will attract tax from September 1. If individuals withdraw cash over Rs 1 crore from their bank accounts in a year, they will be charged a TDS of 2%.
4. Linking PAN to Aadhaar
Citizens who cite an Aadhaar number, but have yet not linked their PAN card to Aadhaar will find their PAN cards becoming invalid. A fresh PAN card will then be issued by the Income Tax Department for tax purposes and other transactions.
Related: NBFCs can use Aadhaar-based bank KYC to give loans
5. Travelling without a ticket
Travelling without a valid ticket in-state buses will attract heavy fines. While earlier the fine was Rs 200, it has been increased to Rs 500 from September 1. A further penalty of Rs 2000 will be levied if you disobey government orders or fail to produce information demanded by authorities.
6. Going on a shopping spree
So far only transactions above Rs 50,000 were required to be reported to the income tax department by banks. From September 1, this threshold has been removed. Now banks can be asked for any and all transactions of individuals to verify consistency in tax returns.
7. Buying a house
So far, if you were buying a house, you had to pay TDS on the cost of the property. This has been amended to include all other payments that go towards a clubhouse, gym, parking, etc. This means TDS is going to increase on the property purchased.
Related: An expert's guide to buying real estate in 2019
8. Paying for services
If you are paying contractors for services to renovate your house or paying vendors for a wedding, a new rule demands you deduct TDS. This is, however, applicable for payments above Rs 50 lakh a year.
Read about how the tax filing structure has been redefined with 'faceless assessment' system to understand more about the changes in the rules and regulations post-2019 Budget.
Did not pay income tax? Broke a traffic signal? Gone on a shopping spree? There are a lot of new rules and penalties that have come into play.
Stay aware and adhere to the following new rules.
1. Missed ITR deadline
The deadline for filing your Income Tax Returns was extended from July 31 to August 31. If you still procrastinated or missed filing your tax returns, there are some heavy fines you will have to bear. A new addition to the Income Tax Act, section 234F, states that individuals will have to pay a fee of up to Rs 10,000 for filing ITR after the deadline for AY 2018-19.
Related: How to File your Income Tax Returns (ITR) Online
2. Violate traffic rules
A large number of traffic rules have changed, and fines have been increased by almost 5 times. Driving an unauthorised vehicle as well as driving without a license will demand a penalty of Rs 5000. In case of drunken driving, the driver will be penalised at Rs 10,000 and/or imprisonment of up to 6 months for the first offence. This will be increased to Rs 15,000 fine and imprisonment of up to 2 years for the second offence. There will be a fine of Rs 1000 for driving without a seatbelt and Rs 5000 for talking on the phone while driving.
3. Cash-heavy transactions
Withdrawing large amounts of cash from the bank will attract tax from September 1. If individuals withdraw cash over Rs 1 crore from their bank accounts in a year, they will be charged a TDS of 2%.
4. Linking PAN to Aadhaar
Citizens who cite an Aadhaar number, but have yet not linked their PAN card to Aadhaar will find their PAN cards becoming invalid. A fresh PAN card will then be issued by the Income Tax Department for tax purposes and other transactions.
Related: NBFCs can use Aadhaar-based bank KYC to give loans
5. Travelling without a ticket
Travelling without a valid ticket in-state buses will attract heavy fines. While earlier the fine was Rs 200, it has been increased to Rs 500 from September 1. A further penalty of Rs 2000 will be levied if you disobey government orders or fail to produce information demanded by authorities.
6. Going on a shopping spree
So far only transactions above Rs 50,000 were required to be reported to the income tax department by banks. From September 1, this threshold has been removed. Now banks can be asked for any and all transactions of individuals to verify consistency in tax returns.
7. Buying a house
So far, if you were buying a house, you had to pay TDS on the cost of the property. This has been amended to include all other payments that go towards a clubhouse, gym, parking, etc. This means TDS is going to increase on the property purchased.
Related: An expert's guide to buying real estate in 2019
8. Paying for services
If you are paying contractors for services to renovate your house or paying vendors for a wedding, a new rule demands you deduct TDS. This is, however, applicable for payments above Rs 50 lakh a year.
Read about how the tax filing structure has been redefined with 'faceless assessment' system to understand more about the changes in the rules and regulations post-2019 Budget.
