New TDS rule, IFSC Codes, Cash Withdrawal to Cheque book charges: What’s changing from tomorrow?

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A number of changes for several bank account holders and taxpayers are coming into effect from tomorrow (1st July 2021). There are some significant changes for account holders of State Bank of India, Andhra Bank, Canara Bank and Syndicate Bank. For taxpayers, new provisions related to TDS and TCS are also coming into effect from tomorrow. These changes were announced by Finance Minister Nirmala Sitharaman in Union Budget 2021 speech.

While all of these changes have been reported earlier by FE Online, here’s a quick list for your perusal once again:

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

From July 1, the tax will be required to be deducted by that person (buyer) whose total sales, gross receipts or turnover from the business carried on by him exceed Rs 50 lakh. “Tax is required to be deducted by such person if the purchase of goods by him from the seller is of the value or aggregate of such value exceeding fifty lakh rupees in the previous year,” according to the Budget 2021 Memo.

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

Syndicate Bank IFSC code to change: Syndicate Bank’s IFSC codes will change from July 1 due to its merger with Canara Bank. The bank has appealed to all its account holders to get new IFSC codes for making transactions.

New cheque books: Account holders of Andhra Bank and Corporation Bank will get new cheque books with security features. Andhra Bank has been amalgamated into the Union Bank of India last year. The existing cheque books of account holders will become invalid.