New rules that have come into effect from Sep1, 2019

TDS on purchase of immovable property

Club membership fee, car parking, electricity, water facility, maintenance and advance amount will be included in the cost of property, while calculating the tax to be deducted at the time of making payment for a property. A buyer will be required to deduct TDS at the rate of 1 per cent of purchase price while buying an immovable property of more than Rs 50 lakh.

Cash withdrawals of Rs 1 cr or more to attract 2% TDS

There will be a 2 per cent tax deduction on cash withdrawals of Rs 1 crore or more from banks or post offices. The government had made this provision with an aim to discourage cash transactions and move towards a cashless economy.

TDS on payments made by HUF/Individual to professionals and contractors

If the payment made to a contractor or a professional or brokerage exceeds Rs 50 lakh in a year, an individual or HUF (Hindu Undivided Family) is required to deduct 5 per cent TDS at the time of crediting such amount.

Deadline for PAN-Aadhaar linking

Those who have not linked their pan cards with Aadhaar will be issued a new PAN. The older PAN will be considered invalid.

Service charges restored on IRCTC e-tickets

E-tickets bought through IRCTC will get costlier. The IRCTC will levy a service charge of Rs 15 per ticket for non-AC classes and Rs 30 for AC classes, including first class. Goods and Services Tax (GST) will be applicable separately.

New road traffic rules

The provisions of the Motor Vehicles Act 2019 have been implemented from September 1. According to the new law, the drunken driving penalty has been increased to 6 months imprisonment and/or Rs 10,000 fine for the first offence and 2 years imprisonment and/or fine of Rs 15,000 for the second offence. The current penalty is Rs 2,000. The penalty for racing and speeding has also been increased to imprisonment of up to 1 month and/or fine up to Rs 500 for first offence and imprisonment of up to 1 month and/or fine of up to Rs 10,000 for the second offence.

Changes in SBI home loan and auto loan

Home loans and auto loans of the State Bank of India (SBI) have been repo-linked at an interest rate starting from 8.05 per cent. The new interest rates will be applicable to all existing and new loans. This means, any changes in the key interest rate by the RBI would be passed on directly to the customers.

Insurance of Rs 24,000 on new vehicles

All general insurers will offer long-term third-party insurance on vehicles sold after September 1. The prospective vehicle buyers will have to pay more than Rs 24,000 for new cars and over Rs 13,000 for new motorcycles in third-party insurance.

KYC update

The central bank would block all the incomplete KYC mobile wallet accounts from September 1 onwards, if the people using mobile wallets like Paytm, PhonePe or GooglePay fail to do so.