PAN will become inactive if not linked to Aadhaar: 20% TCS on payment abroad by credit and debit card, 4 major changes from today

Effective from July 1, four significant changes related to everyday life have come into effect. Failure to link PAN (Permanent Account Number) with Aadhaar by June 30 will render PAN inactive. Additionally, a 20% Tax Collection at Source (TCS) must be paid on the use of international credit and debit cards abroad. Let's take a closer look at these changes.

PAN will become inactive if not linked to Aadhaar:

The government had set a deadline until June 30 for individuals to link their PAN with Aadhaar. If this linkage is not completed by the due date, the PAN will be rendered inactive. Consequently, affected individuals will be barred from opening mutual funds or stock accounts. Failure to comply and using the inactive PAN card as a document can result in a fine of up to Rs 10,000 under section 272B of the Income Tax Act 1961.

Increased interest rates on post office RD and time-deposit scheme:

The government has raised the interest rates on two small savings schemes offered by the post office by up to 0.30% for the July to September quarter. Firstly, the one-year time deposit will now yield 6.90% interest, an increase from 6.80%. Secondly, the rate on two-year time deposits has been raised from 6.9% to 7%. Additionally, the interest rate on five-year post office RD has increased from 6.2% to 6.5%. However, the interest rates for other post office small savings schemes, including Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), National Savings Certificate (NSC), Kisan Vikas Patra (KVP), and Sukanya Samriddhi Yojana, remain unchanged. These new interest rates have come into effect from July 1.

20% TCS on payment abroad by credit and debit cards:

Starting July 1, a 20% Tax Collection at Source (TCS) will be levied on international credit card expenditures abroad exceeding Rs 7 lakh in a financial year. If the expenditure is below Rs 7 lakh, this tax will not apply. For example, if an individual makes a card payment of Rs 8 lakh while traveling abroad in a financial year, they will have to pay 20% TCS, amounting to Rs 1.6 lakh, on the entire amount.

Merger of HDFC Bank and HDFC Limited:

The merger between Housing Development Finance Corporation (HDFC) Limited and HDFC Bank, the largest private sector bank in the country, has become effective. As a result of this merger, the services provided by HDFC Limited will now be available in all branches of HDFC Bank. This includes services such as loans and banking, which will be provided in HDFC Bank branches.

Gas cylinder, petrol, and diesel prices remain unchanged:

As of July 1, there have been no changes in the prices of LPG cylinders, petrol, and diesel. Currently, in Delhi, petrol is being sold at Rs 96.72 per liter, while diesel is available at Rs 89.62 per liter. In Mumbai, petrol is priced at Rs 106.31 per liter, and diesel at Rs 94.27 per liter. Additionally, there have been no changes in the prices of compressed natural gas (CNG) and piped natural gas (PNG).