Changes for several bank account holders and taxpayers: Check it out

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A number of changes will take effect tomorrow for a variety of bank account users and taxpayers (1st July 2021). Account holders of State Bank of India, Andhra Bank, Canara Bank, and Syndicate Bank will notice some substantial changes.New TDS and TCS regulations will also be implemented for taxpayers from tomorrow. Finance Minister Nirmala Sitharaman announced these adjustments in her Union Budget 2021 address.

SBI BSBD account cash withdrawal: After exhausting the four free cash withdrawal limitations, SBI BSBD account users would have to pay Rs 15+ GST on ATM cash withdrawals.

SBI Check book charges: SBI BSBD account holders will receive the first ten cheque leaves free of charge in a fiscal year. Customers will therefore have to pay Rs 40 plus GST for a 10-leaf cheque book, Rs 75 plus GST for a 25-leaf cheque book, and Rs 50 plus GST for 10 leaves or a portion of a 10-leaf check book.

TDS/TCS on non-filers at higher rates: Beginning July 1, ITR non-filers will be subject to a higher TDS/TCS rate. If an individual has not filed an ITR for the past two years and has an aggregate TDS/TCS credit of Rs. 50,000 or more in each of the two years, he or she must pay TDS at a higher rate.

TDS on purchase of goods: Section 194Q of the Finance Act of 2021 established the deduction of tax at source (TDS) on payment for the purchase of goods.

From July 1, the individual (buyer) whose total sales, gross revenues, or turnover from the company carried on by him exceeds Rs 50 lakh will be obliged to deduct the tax. According to the Budget 2021 Memo, “Tax is needed to be deducted by such individual if the acquisition of goods by him from the seller is of the value or aggregate of such value surpassing fifty lakh rupees in the previous year.”

A buyer who has to pay any sum to a seller (resident) for the purchase of goods worth more than Rs. 50 lakhs in any previous year must deduct an amount equal to 0.1 percent of such sum exceeding Rs 50 lakh as TDS at the time of credit to the seller’s account or at the time of payment by any mode, whichever is earlier.

Syndicate Bank’s IFSC code will change: As a result of its merger with Canara Bank, Syndicate Bank’s IFSC codes will change on July 1. The bank has requested that all of its account holders obtain new IFSC codes in order to conduct transactions.

New check book: Account holders of Andhra Bank and Corporation Bank will receive new cheque books with security features. Last year, Andhra Bank was merged with the Union Bank of India. Account holders’ current cheque books will be rendered null and void.

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